Adani Hindenburg case Verdict Live: SC clears Adani, rejects conflict of interest claims, seeks SEBI probe into Hindenburg's short-selling allegation

Sebi has been asked by the Supreme Court to complete the pending two investigations against Adani Group in three months.
There is no valid ground to revoke amendment to FPI and LoDR recommendations, Supreme Court observed in its verdict.
There is no case to transfer the investigation into allegations of violations of securities laws by Adani group companies from market regulator to a SIT.
Today's Supreme Court verdict in Adani case comes after the judgment was reserved in November. A batch of petitions had alleged stock price manipulation by the Adani Group, and had called for an investigation into the irregularities leveled against the Adani group of companies.
The verdict is being seen as a relief for the conglomerate, almost a year after the Hindenburg Research came out with its report.
The Supreme Court has also rejected the allegations of conflict of interest among members of the expert panel looking into the matter.
SC has asked Government of India and SEBI to see if there was any infraction of law by the Hindenburg report on short selling, and if so, take action in accordance with law. Government and market regulator SEBI shall take into consideration the recommendations of the committee to strengthen interest of Indian investors.
The Supreme Court also mentioned that a third-party report and news stories can not be used to start a SEBI investigation. The OCCRP and Hindenburg reports cannot be independently verified, the apex court added in its judgment.
Shares of Adani Group companies trimmed some of their early gains following the verdict, with Adani Enterprises’ shares higher by around 2%.

Shares of Adani group companies bucked the overall weak market and soared upto 11 percent after the Supreme Court disposed petitions filed on Adani-Hindenburg issue.

Shares of the flagship Adani Ports and SEZ and Adani Enterprises rose 2 percent and 5 percent, respectively to clench the spot of top gainers on the Nifty 50. Other Adani group stocks, Adani Wilmar, Adani Green Energy, Adani Power, Adani Total Gas and Adani Energy Solutions were up 3-11 percent.
Shares of Ambuja Cements, ACC and NDTV also edged 1-6 percent higher.

SC says Sebi to probe if Hindenberg short selling was infraction of Indian law.

SC says independent reports or newspaper stories cannot be used to start a SEBI investigation. OCCRP and Hindenburg cannot be independently verified. Furthermore, SC cautions petitioners for filing pleas without adequate research.

No ground here to transfer the probe in this case and can only be raised if there is a wilful or deliberate violation of rules.

Govt of India and SEBI shall take into consideration the recommendations of the committee to strengthen interest of Indian investors.

SC junks allegations of conflict of interest against its panel. Moreover, Govt of India and SEBI to look into whether there is any infraction of the law by the Hindenburg report on short selling, and if so then take action per law.

SC says there are no valid grounds to interfere in FPR and LoDR regulations; power of SC to enter the regulatory domain is limited.

SEBI to complete investigation in 2 pending cases in 3 months. So far, 22/24 investigations completed.

Hindenburg in January accused the Ahmedabad-based ports-to-power conglomerate of “brazen stock manipulation and accounting fraud”, allegations that the Adani group has vehemently denied, calling the report “a calculated attack on India”.

The overall market capitalisation of the Adani Group is back above the Rs 15 lakh crore mark, but remains significantly below the peak of Rs 23 lakh crore. However, the overall market capitalisation has managed to triple from the record low of Rs 5.8 lakh crore, hit during the Hindenburg saga.

Adani Group stocks have rebounded after plunging as much as 80 percent in the aftermath of the Hindenburg report. While stocks like Adani Ports have recovered all of their Hindenburg losses and are trading at newer highs, other group companies have managed to narrow their losses.