New Delhi : In a major decision, the Supreme Court, on Thursday, established an expert committee to address concerns raised by the Hindenburg Research report on Adani Group companies. The six-member committee will be chaired by former apex court judge Justice AM Sapre.
The Supreme Court also directed SEBI to investigate whether there was a violation of Section 19 of SEBI rules and any manipulation of stock prices. The apex court heard petitions related to the Hindenburg report and the creation of a committee to safeguard the interests of investors.
In a hearing held on February 17, the top court refused to accept the Centre's sealed cover suggestion regarding the appointment of the committee, emphasizing its desire for full transparency. Chief Justice of India DY Chandrachud indicated that they would not accept the suggestion as transparency is of utmost importance. Solicitor General Tushar Mehta submitted a sealed cover note, stating that two intentions should be kept in mind: uncovering the truth and presenting a holistic view while avoiding unintended impacts on the market.
The Adani Group's share prices have significantly dropped over the past month, following the Hindenburg report's allegations of stock manipulation and fraud. The conglomerate has called Hindenburg an "unethical short seller" and dismissed the report as a lie.
The continued sell-offs led Adani Enterprises Limited to cancel a fully subscribed Rs 20,000 crore follow-on public offer. In a 413-page report, the Adani Group stated that the Hindenburg Research report was not only an unwarranted attack on any specific company but also a calculated attack on India, its growth story, institutions, and ambitions.
