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Adani Hindenburg Case: The stock market regulator SEBI will no longer seek extension of time from the Supreme Court to probe the Adani case. SEBI itself has informed the Supreme Court about this. After this, it is believed that SEBI’s investigation is now in its final stages.
Court asked questions to SEBI
Chief Justice DY Chandrachud on Friday asked SEBI what steps have been taken from the investors’ point of view. Are there any steps taken to ensure investor protection? In this regard, Solicitor General Tushar Mehta, representing SEBI, said that if such cases are found, action has been taken against the short sellers. Mehta said – There is no objection to the recommendations of the panel to strengthen the regulatory system. These recommendations are under consideration and accepted by us in principle.
Allegations against Adani Group: Let us tell you that in the month of January, the American short seller firm Hindenburg made many serious allegations against the Adani Group in a report. After this, the shares of the Adani group fell sharply and the market capitalization fell by about 150 billion dollars. It also affected the stock market and investors suffered huge losses.
The matter reached the court: Following this loss, several separate petitions were filed in the Supreme Court. After hearing these petitions, the Supreme Court constituted a panel in March. With this, SEBI was ordered to investigate the matter. SEBI was supposed to complete the probe in 2 months but before the deadline the market regulator sought time from the Supreme Court. After this the Supreme Court gave 3 months time. This deadline has expired on 14th August. Although SEBI has submitted the status report to the court but the final report is still awaited.
A clean chit from the panel: At the same time, a Supreme Court-appointed panel gave a clean chit to the Adani group in an interim report in May. The panel said it found no clear pattern of manipulation and no regulatory failures in billionaire Gautam Adani’s companies. The panel has also given some recommendations to SEBI in the interest of investors.