Adani-Hindenburg row: Supreme Court extends deadline for SEBI probe till August 14

SEBI sought an extension of time to conclude the probe into the Adani issue, informed that the 12 transactions under investigation as mentioned in the Hindenburg report are highly complex and require a lot of time to examine.

New Delhi: The Supreme Court has accommodated the time extension request from the Securities and Exchange Board of India (SEBI) and granted it time till Aug. 14, 2023 to conclude its probe into allegations of stock price manipulations made against Adani group by Hindenburg Research.

A bench headed by Chief Justice DY Chandrachud directed the SEBI to file an updated status report of the investigation. The bench, also comprising Justices PS Narasimha and JB Pardiwala, also ordered that the report of the Justice AM Sapre committee, which was submitted to it, be made available to the parties to enable them to assist the court in the matter. The hearing comes close on the heels of the apex court on Monday adjourning the hearing on SEBI's plea seeking a six-month extension to conclude its probe into the Adani Group issue to July 10.

The apex court had on March 2 ordered the formation of a six-member committee to probe allegations of stock manipulation against Adani Group by US short-seller. India's capital markets regulator Securities and Exchange Board of India (SEBI) told the court that any incorrect or premature conclusion of its investigation into the Adani Group issue will be "legally untenable". The bench led by CJI DY Chadrachud adjourned the matter. SEBI told the court that the investigation it did in the past pertained to the issuance of Global Depository Receipts (GDRs) by 51 Indian-listed companies which comprised no company from the Adani Group.

SEBI maintained that the allegation that it is investigating Adani since 2016 is factually incorrect. On the Hindenburg report, SEBI said it sought an extension of time to ensure justice to investors. The market regulator informed that the 12 transactions under investigation as mentioned in the Hindenburg report are highly complex.

They have many sub-transactions which involved numerous jurisdictions. An in-depth investigation of these transactions would require the collection and collation of data from multiple sources. These include bank statements from a number of domestic and international banks, financial statements of onshore and offshore entities along with other supporting documents.

It was on March 2 that the Supreme Court directed SEBI to investigate any securities law violations by the Adani Group. The court set up an expert committee to study the aftermath of the Hindenburg Research report on the Adani Group. The six-member committed is headed by former SC judge Justice A M Sapre.

In its order, the apex court asked SEBI to file a status report within two months. The court at that time heard petitions relating to committees and regulatory mechanisms to protect the interests of the investors. The Adani Group has slammed the January 24 Hindenburg report that alleged stock manipulation by the Indian conglomerate. The Adani Group then dismissed the Hindenburg report as "nothing but a lie".