SEBI's status report on Adani-Hindenburg: Supreme Court delays hearing
What's the story
The Supreme Court of India has delayed the hearing on the Securities and Exchange Board of India's (SEBI) status report in the Adani-Hindenburg case.
SEBI's status report reveals that 22 of 24 investigations have concluded, with one interim report prepared.
The regulator is still awaiting information from five tax havens regarding the actual owners behind foreign investors in the conglomerate.
The Chief Justice of India-led bench is occupied as it addresses ongoing challenges related to the abrogation of Article 370.
Details
SEBI encountered hurdles related to FPIs
SEB was tasked with investigating Hindenburg's allegations against Adani Group in March. It was supposed to submit the status report on August 15 but presented it on August 25 after seeking a 15-day extension.
SEBI has encountered challenges in identifying the economic interests of shareholders among the 12 Foreign Portfolio Investors (FPIs) due to many entities being located in tax havens.
The regulator will take appropriate action based on the outcome of its investigation once crucial overseas data becomes available.
What Next?
Supreme Court-appointed expert committee had cleared Adani Group
Hindenburg Research had accused Adani Group of stock manipulation and accounting fraud. Adani Group has consistently denied the short-seller's allegations.
In May, the conglomerate was vindicated by an expert committee appointed by the Supreme Court, which found no regulatory failure on the part of the Adani Group.
The outcome of SEBI's report could have significant implications for both the Adani Group and the broader market.