Adani-Hindenburg row: SC directs SEBI to probe Adani

The Supreme Court has directed capital markets regulator SEBI to complete the probe into the Adani-Hindenburg issue within 2 months.

The top court has ordered that SEBI's investigation must include whether there was any violation of securities contract rules, whether there was any failure to disclose transactions as per the law and if there was any manipulation of stock prices in contravention of existing laws.

SC order on Adani

The top court has also constituted an expert committee to look into the regulatory mechanism in light of this controversy and whether this mechanism needs to be strengthened in order to protect investors.

The committee will be headed by Former SC Judge, Justice AM Sapre. The committee members include, OP Bhat (Former SBI Chairman), Retired Justice JP Devdatt, KV Kamath, Nandan Nilakeni, Somasekharan Sundaresan.

The Supreme Court refused to accept names proposed by the centre for the committee, saying that it cannot amount to a govt constituted committee and that there has to be full public confidence in the committee.

On January 24th, U.S based short seller, Hindenburg research released a report making scathing allegations of stock price manipulation and corporate governance malpractices. This report sent the Adani group stocks on a downward spiral. Adani group strongly denied the accusations in a 400 page reply.

Following the Superme Court's order, embattled tycoon Gautam Adani welcomed the top court's decision of a time-bound probe into allegations levelled by Hindenburg Research against his group, saying this will bring finality and truth will prevail.