Adani-Hindenburg matter: Sebi tells SC it won't seek extension to complete probe

Market regulator SEBI on Friday told the Supreme Court that it will not be asking for any more extension to complete its probe in the Adani-Hindenburg matter. 

Chief Justice of India DY Chandrachud on Friday, while hearing the case, asked the market regulator what it has been doing on investor value and if it is ensuring their protection. To this, Sebi's counsel Solicitor General Tushar Mehta said action has been taken against short-sellers on instances found. 

Sebi said that it has finised its investigation in 22 cases of the total 24. “There are 24 cases for investigation, in 22 cases investigation has been completed,” Sebi told SC.

It further said it has begun the process to arrive at the decision post its investigation.

"There is extreme volatility in the stock market. What is the SEBI planning to do for this kind of volatility for the investors," Sebi was asked.

"There is no objection to the recommendations of the expert committee for strengthening the regulatory mechanism and the recommendations are under considerations and in principle we have accepted the recommendation," Mehta told the bench on Friday.

Earlier this year, the Supreme Court had set up an expert committee. In its report, the panel said that it saw "no evident pattern of manipulation" in billionaire Gautam Adani's companies and there was no regulatory failure.

The six-member expert panel was headed by retired SC judge Justice AM Sapre and had eminent members -- OP Bhatt, KV Kamath, Nandan Nilekani, JP Devadhar & Somasekhar Sundaresan.

On Friday, Sebi said the expert committee pointed out a few suggestions for regulatory oversight, in principle accepted suggestions, under active consideration.

The panel had noted several amendments the market regulator made between 2014 and 2019 that constrained its ability to investigate, and its probe into alleged violations money flows from offshore entities has hit the wall.

Earlier this month, the apex court said that the SC court registry would examine the matter of scheduling hearings for Public Interest Litigations (PILs) related to accusations of stock price manipulation by the Adani group.

In January this year, a report by Hindenburg Research alleged stock manipulation and fraud by the ports-to-power conglomerate.

On its part, the Adani Group has denied the allegations and said Hindenburg is as "an unethical short seller". In a detailed statement, the company said the report was "nothing but a lie". 

Following the proceedings in the Supreme Court, most Adani Group stocks were in the green, except Adani Ports and Ambuja Cements. Shares of Adani Enterprises were up by 1.3 per cent, while Adani Green surged by 1.3 per cent. Adani Power stock was up 1.89 per cent, Adani Wilmar was up by 0.24 per cent. Adani Energy Solutions shares were up 0.64 per cent, Adani Total Gas up by 1.26 per cent, ACC shares were up by 0.07 per cent. 

On the other hand, Adani Ports shares tumbled and were trading 0.78 per cent lower. Ambuja Cements shares were down by 0.60 per cent.

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