SEBI assures SC of timely conclusion of Adani Group's investigation
What's the story
The Securities and Exchange Board of India (SEBI) has assured the Supreme Court that it will not request an extension to finish its investigation into billionaire Gautam Adani's group concerning the Hindenburg report.
During the hearing on Friday, Chief Justice of India DY Chandrachud inquired what SEBI has been doing on investor value and if it is ensuring their protection.
Solicitor General Tushar Mehta confirmed that SEBI has completed 22 out of 24 cases and does not need more time.
Details
SEBI to decide the course of action soon
Solicitor General Mehta responded to the Chief Justice's concerns, stating that SEBI has taken action against short-sellers when necessary.
He also noted that the market regulator is in the process of making a decision after completing its investigation.
"There is extreme volatility in the stock market. What is the SEBI planning to do for this kind of volatility for the investors," the Supreme Court had previously questioned SEBI.
What Next?
SEBI accepts expert committee recommendationsÂ
The Solicitor General informed the Supreme Court that SEBI has no objections to the expert committee's recommendations for strengthening regulatory mechanisms.
He said that the recommendations are under consideration and have been accepted in principle by SEBI.
Insights
What's the controversy?
Adani found itself amidst controversy in January 2023 when Hindenburg Research accused the conglomerate of corporate misgovernance and other charges, all of which Adani strongly refuted.
As a result of this report, stocks associated with the company experienced significant declines on Dalal Street, grabbing the attention of the apex court.
Eventually, the Supreme Court established a panel to assist the market regulator in investigating specific concerns.
Insights
Adani refuted Hindenberg as an unethical short seller
The Adani Group criticized Hindenburg as "an unethical short seller," dismissing the New York-based entity's report as "nothing but a lie."
In the stock market, short sellers bet against the price of a stock by borrowing shares of a stock they believe will decrease in value and selling them at the current price.
Later, they aim to buy back the same shares at a lower price, return them to the lender, and pocket the difference as profit.