14 March 2023 11:43 AM GMT
The Finance Ministry has disclosed that no separate Committee has been constituted by it to investigate the allegations made against the Adani Group of companies by short-seller Hindenburg Research of the US.However, market regulator SEBI is probing the matter and so far investigations pertaining to imports of Power Generation, Power Transmission and Infrastructure (Port & SEZ) Equipment...
The Finance Ministry has disclosed that no separate Committee has been constituted by it to investigate the allegations made against the Adani Group of companies by short-seller Hindenburg Research of the US.
However, market regulator SEBI is probing the matter and so far investigations pertaining to imports of Power Generation, Power Transmission and Infrastructure (Port & SEZ) Equipment by Adani Group companies have been concluded by the Directorate of Revenue Intelligence (DRI). A report on this aspect has been submitted before the relevant judicial authorities.
As regards case pertaining to imports of Indonesian coal by Adani Group of Companies, investigations by DRI have not reached finality as information sought from exporting countries through execution of Letters Rogatory (LRs) is under litigation, the Government said.
MoS Finance, Pankaj Chaudhary was responding to written questions in Lok Sabha as to whether the Adani group is under investigation for violating SEBI Regulations.
It was on January 24 that US-based Hindenburg published its report accusing Adani group of widespread manipulations and malpractices to inflate its stock prices. Adani Group refuted the allegations by publishing a 413-page reply and even went to the extent of terming it as attack against India. Hindeburg shot back with a rejoinder, saying that 'fraud cannot be obfuscated by nationalism' and stood by its report.
The Minister said SEBI is enquiring into the allegations made in the Hindenburg report as well as the market activity immediately preceding and post the publication of the report, to identify violations of SEBI Regulations including but not limited to SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, SEBI (Prohibition of Insider Trading) Regulations, 2015, SEBI (Foreign Portfolio Investors) Regulations, 2019, Offshore Derivative Instruments (ODI) norms, short selling norms, if any.
The matter is also pending consideration before the Supreme Court, which has directed SEBI to complete its probe within two months. It has also constituted an expert committee to review the regulatory framework to protect Indian investors in the wake of issue. It appointed OP Bhat (former Chairman of SBI), retired Justice JP Devadhar , Mr KV Kamath, Mr Nandan Nilakeni, Mr.Somasekharan Sundaresan as the members of the committee. The Committee will be under the head of former Supreme Court judge Justice AM Sapre.
However, the Top Court refused to gag the media from reporting on Adani-Hindenburg issue till the court pronounces the order.
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