SEBI accused of hiding 2014 Adani manipulation alert by DRI
The Securities and Exchange Board of India (SEBI) is facing accusations of hiding a 2014 Directorate of Revenue Intelligence (DRI) alert. It allegedly had information about Adani Group's alleged money siphoning and investing it in Adani-listed companies via Dubai and Mauritius-based entities. The petitioner in the Hindenburg matter told the Supreme Court, that SEBI never investigated the DRI alert, amounting to perjury, and accused the regulatory body of suppressing facts and providing false information.
Hindenburg report triggered SEBI investigation
Published on January 24, 2023, the Hindenburg report accused the Adani Group of stock manipulation and fraud. Following a Supreme Court order on March 2, SEBI investigated 24 cases arising from the report. Recently, SEBI filed a status report with the apex court, stating that 22 of the investigations are final, while two remain interim. SEBI is now accused of suppressing information about Adani Group's manipulations since 2014.
Petitioner alleges SEBI brought amendments to help Adani
The petitioner in the Hindenburg matter claimed that Adani Group's overseas entities were/are front companies for the group's promoters. If true, this would violate Rule 19A of the Securities Contract (Regulation) Rules, 1957, which mandates minimum public shareholding and its attainment within a specified period. The petitioner also alleged that SEBI introduced a series of amendments specifically to benefit Adani.
Integrity of former SEBI chairperson UK Sinha questioned
The petitioner Anamika Jaiswal, claimed that the then SEBI chairperson in January 2014, UK Sinha, chose not to act on the DRI letter. He was appointed on February 18, 2011, and retired on March 1, 2017. Jaiswal added that it was interesting that Sinha is currently serving as the "Non-Executive Independent Director Chairperson" of NDTV, acquired by the Adani Group last year.
