Adani-Hindenburg row: Supreme Court gives Sebi extension till August 14 to complete probe

The Supreme Court on Wednesday granted the Securities and Exchange Board of India (Sebi) upto three months to complete its probe into Hindenburg’s allegations against the Adani Group. The bench also asked the capital markets regulator to give an updated status report by August 14. The CJI-led bench said that we are dealing with the fallout of the Hindenburg report right now. CJI DY Chandrachud said that the issue non-compliance of the MPS norms flagged in the Hindenburg report has some bearing.

The Supreme Court was hearing a batch of petitions seeking a probe on the litany of allegations by Hindenburg against the Adani Group. A key petition was the Sebi’s plea seeking an extension of time to update on the probe.

Senior advocate Prashant Bhushan said there is a clear attempt to shield the Adani Group companies and there were multiple matters listed with the Sebi and Securities Appellate Tribunal (SAT).  He also said that despite doubts about the group, its shares increased around 10,000 per cent in two years.

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Commenting on Sebi’s probe into Hindenburg’s allegations, Bhushan said there cannot be any certainty regarding unless the capital markets regulator puts down details about the 2016 probe on record. The Minister said in the Parliament that the Sebi was investigating the Adani Group since 2016 and 2021, Bhushan said. The senior counsel added that the regulator has to give information on record.

Replying to Prashant Bhushan's allegations, Solicitor General Tushar Mehta said that the top court constituted an expert committee to monitor the investigation. The SG further sought an extension of time till September.

To this, the CJI retorted that the Sebi must give information on the probe and apprise the court what on the progress since two months were given previously. With today's extension, the CJI said that the capital markets regulator has got a total extension of 5 months. He added that the court cannot give unlimited extensions.

Six out of 10 listed Adani Group stocks traded lower in afternoon deals today. Adani Total Gas, Adani Transmission, Adani Wilmar, Adani Power, ACC and NDTV fell up to 5 per cent.

(With India Today inputs)

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