BREAKING| SEBI Requests Supreme Court To Grant 15 More Days To Complete Adani-Hindenburg Probe; Says 'Substantial Progress' Made

The Securities and Exchange Board of India (SEBI) today filed an application in the Supreme Court seeking15 more days to complete the investigation into the allegations made by US-based short-seller firm Hindenburg Research against Adani group companies. The deadline set by the Supreme Court is expiring today, August 14.In its application,SEBI informed the court that "it has progressed substantially". The market regulator further said that in one matter, an interim report has been prepared on the basis of the materials available and that it has sought information from agencies and regulators in foreign jurisdictions, etc. and upon receipt of such information, it will evaluate the same to determine further course of action, if any, in the said matter. Out of the remaining 6 matters, in 4, findings have been crystalized and the reports are waiting the approval of the competent authorities. In the other two matters, in one matter, investigation is at an advanced stage and in the other, interim report is under preparation.The court had earlier extended the time for the Securities and Exchange Board of India (SEBI) till August 14, 2023 to complete its probe into allegations against Adani group companies about stock price manipulations. The bench had passed the extension order on May 17 in an application filed by the SEBI seeking a further time of 6 months to complete the probe. The two months’ time originally allowed by the apex court as per its March 2 order ended on May 2.BackgroundIt 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.Later, a bunch of PILs were filed in the Supreme Court by Advocates Vishal Tiwari, ML Sharma, Congress leader Dr.Jaya Thakur, activist Anamika Jaiswal seeking Court-monitored probe into the matter.On March 2 2023, the court constituted a committee and appointed the following persons as the members of the committee– Mr OP Bhat (former Chairman of SBI), retired Justice JP Devadhar, Mr KV Kamath, Mr Nandan Nilakeni, Mr. Somasekharan Sundaresan. The Committee was held to be under the head of former Supreme Court judge Justice AM Sapre. The court directed the committee to submit its report in a sealed cover before this court within 2 months. However, the court remarked that the constitution of the expert committee did not divest SEBI of its powers or responsibilities in continuing with its investigation into the volatility in the securities market in India. SEBI was also directed to submit a status report within a period of two months.Later, the SEBI filed an application in the Supreme Court seeking a six-month extension to complete its probe into allegations.The SEBI in its application said that examinations/investigations for which further time would be required would fall into three broad categories :(i) Those where prima facie violations have been found and a period of 6 months would be required to arrive at conclusive finding.(ii) Those where prima facie violations have not been found, a period of 6 months would be required to revalidate the analysis and arrive at conclusive finding.(iii) In cases where, further examination/investigation is required and most of the data that is required for this purpose is expected to be reasonably accessible, a conclusive finding is expected to be arrived at in 6 months.In its rejoinder affidavit, SEBI had stated that the transactions are complex and require more time to examine. SEBI has informed the apex court bench that it has already approached eleven overseas regulators under the Multilateral Memorandum of Understanding (MMOU) with International Organisation of Securities Commissions (IOSCO) with respect to its investigation into Minimum Public Shareholding (MPS) norms.The Supreme Court refused to grant a 6-month extension but extended the time till August 14, 2023. The case is listed on August 29, 2023.Case Title: Vishal Tiwari v. Union of India & Ors. | Writ Petition (Civil) No. 162 of 2023 and other connected matters

BREAKING| SEBI Requests Supreme Court To Grant 15 More Days To Complete Adani-Hindenburg Probe; Says 'Substantial Progress' Made

Padmakshi Sharma

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