Adani Hindenburg Row: While forming a preliminary opinion on 12 transactions carried out by Adani Group, SEBI is also investigating whether Hindenburg Research may have violated Indian laws governing short-selling. The US-based company had levelled various accusations against the Adani Group, but it had also admitted that it intended to short the company’s shares.
SEBI is focusing on 12 transactions by the Adani Group
One of the key areas where significant revelations will be made, according to the sources, is the trading in Adani Group stocks during and after the publishing of the Hindenburg Report. SEBI has examined this matter and developed its opinion on it. In addition to this, SEBI has developed its opinions on potential FPI regulation violations, offshore derivative instrument (P-Note) standards, and insider trading. According to sources, SEBI is focusing on 12 transactions by the Adani Group, including alleged suspicious transactions where potential violations or financial data misrepresentation were flagged, circumvention of fraud regulations, related party transaction disclosures, corporate governance issues, and that of minimum public shareholding norms in relation to holdings in the Adani Group by foreign portfolio investors and stock manipulation.
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SEC initiated action against listed businesses in 13 cases
The Supreme Court and the committee it created were told by SEBI of the issues on which it had made its prima-facie opinion. The present investigation by SEBI into the Adani Group and related stock price manipulation is the agency’s largest probe against a corporate entity in India in recent years. The Securities Exchange Commission (SEC) of the US took roughly 34 months to wrap up its investigations for the year 2020, SEBI said the supreme court. It was noted that the SEC initiated action against listed businesses in 13 cases, with investigative times ranging from 9 months to 5 years on average, based on the sample of 56 cases that SEBI evaluated after Hindenburg issued its report.
The inquiry into these transactions would have taken at least 15 months to complete
In addition, the regulator informed the top court that it would require more time to reach confirmed conclusions and wrap up the investigations into the 12 questionable transactions in light of the aforementioned conditions. According to SEBI, the inquiry into these transactions would have taken at least 15 months to complete under normal circumstances. Yet it has only asked for six months to wrap out its investigation, which must remove numerous layers while spanning multiple international countries. According to sources, SEBI has asked a small number of FPIs holding Adani shares for details on the ultimate beneficiaries of their holdings. However, according to the sources, the FPIs pointed SEBI to the regulators in the countries where they had registered.
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