The Supreme Court has finally ordered a probe into the Adani-Hindenburg episode after the continuous demands by the opposition including Congress leader Rahul Gandhi. The SC has set up and experts committee which will bet ended by retired judge AM Sapre. OP Bhat, JP Devdhar, KV Kamath, Nandan Nilakeni and advocate Saomasekhar Sundaresan will be other members of the panel.
Supreme Court orders probe into Adani-Hindenburg tussle
The Supreme Court on Thursday ordered a probe into the Adani Hindenburg matter. The Apex Court has also sought a report in two months from SEBI which has been conducting an investigation in the matter. SEBI must probe if there are violations of the securities act, the apex court said while also directing SEBI must probe whether there has been a failure to disclose related party transactions.
Court further clarified that the construction of newly experts committee will not divest SEBI of its power, jurisdiction, and responsibility to probe these issues
In the probe, the panel set up by the experts will examine several sectors which can prevent from such incidents to happen further. The panel, will suggest measures to strengthen the statutory and regularly framework which will work to strengthen investors’ awareness.
The Supreme Court directed the probe while hearing petitions asking for regular regulatory mechanisms to protect investors.
The Hindenburg report
The Hindenburg report was released on January 24 and claimed accounting fraud and stock manipulation by the Adani group. The report massively affected the AdanI FPO which opened around the same time. While the group disseminated the report by calling it “unresearched,” it led to massive rout of Adani stocks.
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