Adani Hindenburg Row: The Supreme Court has been asked for an additional 15 days to allow the Securities and Exchange Board of India (SEBI) to finish its probe into the Adani-Hindenburg case. By August 14, 2023, the market regulator was supposed to have submitted its report regarding the incident. The market regulator stated that it has made great progress but has not finished its thorough investigation in the case in a filing before the Supreme Court.
Investigating Adani-Hindenburg Case Amid Foreign Transaction Complexities
According to Sebi, it has finished looking into 17 of the 24 transactions it was looking into in relation to the claims made against the Adani Group by US short-seller Hindenburg Research. The market regulator has told the Supreme Court that, in order to plan its next line of action, it has requested additional information from other regulators and other jurisdictions. According to reports, the market regulator had difficulties looking into certain aspects of the case because there were foreign transactions involved. This was due to the lack of full cooperation from foreign authorities in releasing information about foreign portfolio shareholders who own Adani Group equities. While acknowledging that it has made significant progress in the investigations, Sebi also stated that it would be in the “interest of justice” to be given an additional 15 days to submit the final report. It is important to note that Sebi has until August 14 to conduct its investigation and submit its report after the Supreme Court granted it a three-month extension.
Adani Group’s Market Manipulation Controversy
The Adani Group was accused of market manipulation in a damning study published in January by US short-seller Hindenburg Research, which also questioned the excessive valuations of several group equities. Even though the company denied the charges, the article caused a $150 billion decline in the aggregate market capitalization of the Adani Group. The Adani Group became embroiled in a political controversy in the months that followed, and the case ultimately came before the Supreme Court. The court appointed a six-member expert team to look into the situation and also directed Sebi to produce a report. Most of the principal group firms are still trading substantially lower than levels reached before the US short-seller released its research, despite the fact that most Adani Group stocks have recovered from the first bloodbath caused by the Hindenburg report.
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