SEBI denies allegations of investigating Adani Group since 2016
There have been allegations of SEBI investigating Adani Group companies even before the report by Hindenburg Research came out. On Monday, India's market regulator denied such rumors in the Supreme Court. The Supreme Court had tasked SEBI with investigating any possible violations by the Adani Group on March 2. SEBI is seeking a six months extension to complete its probe.
Why does this story matter?
The Adani-Hindenburg saga refuses to go away. A report by Hindenburg accusing Adani Group of accounting fraud and stock manipulation hit the once-high-flying conglomerate hard. The report resulted in Adani stocks falling steeply. They have been on a recovery path lately. The market's attention is now on the Supreme Court. Will the court give the conglomerate some relief?
SEBI termed allegations 'factually baseless'
A petition in the Supreme Court alleged SEBI, or the Securities and Exchange Board of India, had been investigating Adani Group companies since 2016. In its affidavit, the regulator denied this and termed it "factually baseless." The investigation mentioned by the petitioner is related to the issuance of GDRs (global depository receipts) by 51 Indian companies.
Adani Group companies were not part of investigation: SEBI
"The 'investigation' referred to in paragraph 5 of the reply affidavit has no relation and/or connection to the issues referred to and/or arising out of the Hindenburg Report," SEBI said in the Supreme Court. The regulator said "no listed company of Adani Group" was part of the 51 companies it investigated. It added "appropriate enforcement actions" were taken in that matter.
The regulator justified its request for an extension
In its affidavit, SEBI justified why it is seeking more time to complete its investigation. "The application for extension of time filed by SEBI is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market," the regulator said. It said an "incorrect or premature conclusion" would not serve the ends of justice.
Supreme Court might give a 3-month extension
SEBI submitted its application to extend the probe on April 29, three days before the deadline set by the Supreme Court. The regulator's lawyer attributed this to the involvement of cross-border jurisdictions. On Friday, the Supreme Court hinted at granting an extra three months to complete the probe. "SEBI cannot take indefinitely long period and we will give them three months," the court said.
