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The Supreme Court had earlier directed the Securities and Exchange Board of India (SEBI) to submit an overall report on the situation after, on January 24, a US-based investment research firm named Hindenburg Research published a report titled 'Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History', making allegations against the conglomerate, saying that the group has been involved 'in a brazen stock manipulation and accounting fraud scheme over the course of decades'
SEBI has filed a plea in the Supreme Court seeking 15 more days to file its report on probe into Adani-Hindenburg issue, saying substantial work has been done in this regard.
The top court had earlier directed the market regulator SEBI, to file its probe report with respect to Adani-Hindenburg case by August 14.
In an application, the SEBI asked the court to pass an order extending the time granted to it in terms of the orders issued on March 2 and May 17, 2023 to conclude the investigation and submit the status report.
The Supreme Court is now scheduled to hear the matter on August 29.
In compliance with the SC order, the SEBI said it has examined/ investigated 24 matters. Out of the said 24 investigations/ examinations, 17 are final and complete and approved by the Competent Authority in accordance with SEBI's extant practice and procedures, the SEBI said.
The plea by the SEBI also submitted that in the matter, it has completed the investigation based on the material that could be gathered by it thus far.
An interim report has been prepared and approved by the Competent Authority in accordance with SEBI's extant practice and procedures, the SEBI added.
The SEBI also said it had sought information from agencies regulators in foreign jurisdictions, etc and upon receipt of such information, will evaluate time frame to determine further course of action, if any, in the said matter.
"Out of the remaining 6 matters, in 4 investigations/ examinations, findings have been crystalized and the reports prepared consequent thereto are in the process of approval by the Competent Authority. SEBI expects to complete the approval process in respect of the 4 matters shortly and in any event before the next date of hearing, i.e. August 29, 2023," SEBI said.
It also said that in the remaining two matters, investigation is at an advanced stage in one matter and in the other one matter, interim report is under preparation based on information gathered by SEBI so far.
The Securities and Exchange Board of India had earlier filed a plea in the Supreme Court seeking extension of time by six months to complete its probe into Adani group of companies accused of "accounting fraud" and "brazen stock manipulation" according to January 25 report by the US short seller firm Hindenburg.
The court, however, had declined the request, saying it can't extend the time indefinitely.
Notably, a batch of petitions seeking an investigation against US-based Hindenburg Research and others seeking an investigation against Adani Group over allegations made by Hindenburg Research were filed in February.
On February 17, the top court had reserved its order in these batch while observing that it was inclined to maintain 'full transparency' in the matter.
It may be noted that recently, Solicitor General Tushar Mehta had submitted his apprehension before the Supreme Court appointing an expert committee to look into the Hindenburg Report.
"Existing agencies are fully equipped. However, responding to your lordships suggestions, we have no objection in constituting a committee. The only thing is, we don't want to send a message that a government agency needs to be overseen by a committee...", the SG had submitted before a CJI Chandrachud-led bench.
Case Title: Vishal Tiwari Vs. Union of India & Ors.
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