Jahanvi Agarwal
On August 14, 2023, the Securities and Exchange Board of India (SEBI) requested an extension of 15 days in order to complete its investigation into the accusations made against the Adani group of companies by the US-based short-seller firm Hindenburg Research.
By means of an affidavit, the lawyer for the market regulator informed the Apex Court that the case has made substantial progress.
He stated that based on the material an interim report of the seven cases has been prepared, adding that it has sought information from agencies and regulators in foreign jurisdictions.
He argues that the findings have been crystallized, and the reports have been waiting for approval from the competent authorities in regard to four matters.
He also pointed out that, the investigation was at an advanced stage in one of the remaining two matters, while an interim report was under preparation in the seventh matter.
The Court held that the board will evaluate the information after receiving it and decide on any additional course of action, if any, on the subject.
On May 17, Supreme Court ordered the market regulator to wrap up its investigation into the charges of stock price manipulation made by Hindenburg Research against the Adani Group firms by August order in response to a request from SEBI for an additional six months to conclude the investigation. The two months that were initially permitted by the Supreme Court as per its order from March 2nd came to an end on May 2nd.
The market regulator had asked for a six-month extension by way of a rejoinder affidavit, apprising the Supreme Court that the transactions were complex in the case and required more time to examine.
Earlier, SEBI denied the petitioner’s claim that it had been looking into the Adani Group of Companies since 2016.
The petitioner stated that the examination focused on the issuing of Global Depository Receipts by 51 Indian-listed businesses, none of which were members of the Adani Group.
According to SEBI, they have already approached 11 foreign regulators as part of their examination of the MPS norms under the Multilateral Memorandum of Understanding (MMOU) with the International Organisation of Securities Commissions (IOSCO).
NDOH for the said matter is listed on 29.08.2023.
Case Name: Vishal Tiwari v. Union of India & Ors.
Diary Number: 162/2023