Adani Group stocks focus as SC to hear the matter after Sebi's report

Shares of Adani Group companies namely Adani Enterprises, Adani Ports and SEZ, Adani Power, Adani Green Energy, Adani Wilmar, Adani Total Gas and Adani Energy Solutions, will remain in focus on Tuesday as the Supreme Court (SC) will hear the Hindenburg Research matter. The capital markets watchdog Sebi has submitted a status report of the investigation on Friday.

Sebi informed the apex court that it was still awaiting information from five tax havens on actual owners behind foreign investors investing in the conglomerate, PTI reported. In a status report, Sebi stated that out of the 24 matters it was probing, findings in 22 are final. As per an India Today report, the SC hearing in the case was scheduled for August 29.

Sebi was investigating allegations made by Hindenburg Research in January this year, wherein it accused the Adani Group of stock manipulation, fraudulent transactions and other financial misdeeds. However, the Gautam Adani-led conglomerate denied allegations and wrongdoings.

Sebi was required to submit its investigation report on the Hindenburg allegations by August 14. However, the capital markets regulator sought a 15-day extension and submitted its status report on Friday, August 25.

The content of the Sebi report are not public. A report by The Mint suggested that a single a single market participant took a derivatives position worth an estimated 600 crore in Adani Enterprises Ltd (AEL), flagship of the Adani Group, just days before India’s markets regulator submitted its status report on the Adani probe to the Supreme Court on 25 August.

The position taken by the participant indicates anticipation of a sharp price movement in the stock. Usually, when such a huge position is taken, the stock is put into a futures and options (F&O) ban, which means no fresh positions are allowed, and only existing positions can be squared-off, until the ban is lifted.

Designated ‘Client 1’ by National Stock Exchange (NSE), the participant initiated a position of 22.4 lakh shares, or 3.04 per cent, of Adani Enterprises' market wide position limit of 7.37 lakh shares on August 22, added the report. Based on the closing price of the Adani Enterprises' active futures contract on that day, the cost of the position was Rs 607.25 crore.
 

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