Adani-Hindenurg probe: SEBI seeks six more months from SC to investigate

SEBI said the 12 suspicious transactions related to the Adani group have many sub-transactions and a rigorous investigation of these transactions would require collation of data/information from various sources

The Securities and Exchange Board of India (SEBI) has filed an application in the Supreme Court, asking for six more months to complete its probe into allegations made by American short seller Hindenburg against the Adani group.

The Supreme Court, in its March 2 order, had asked SEBI to conclude the investigation in allegations against Adani and submit a report in this regard in two months, which is slated to end on May 2.

The regulator has sought for time as the  investigation/examination relating to 12 suspicious transactions alleged in the Hindenburg report are complex and would require at least 15 months for completion of the
investigation. However, the regulator has said that it is making all reasonable endeavors to conclude the same within six months.

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The application states that 12 suspicious transactions, have
many sub -transactions and a rigorous investigation of these
transactions would require collation of data/information from
various sources along with detailed analysis including verification
of submissions made by the companies.

According to the application, SEBI, attended two meetings called by the SC appointed committee on April 2 and April 26 respectively, and made detailed presentations before the Committee.

The plea further states that post the first meeting, the committee sought detailed queries and information from SEBI. The regulator has responded to the same with  extensive data, supporting notes and other information. SEBI has further stated that it has apprised the committee of the interim findings and the steps it has taken pursuant to the SC order.

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The Supreme Court on March 2 set up a six-member panel, led by a former judge of the court AM Sapre, to look into the Adani group stocks' rout following the Hindenburg report and also suggest ways to strengthen the stock market regulatory framework.

A bench of Chief Justice of India DY Chandrachud and Justices PS Narasimha and JB Pardiwala said the panel would also look into the accusations made in the short-seller’s report and assess the overall situation.

The bench directed the Centre, financial statutory bodies and SEBI chairperson to extend all cooperation to the panel, which has to submit its report within two months.

Former SBI Chairman OP Bhatt and Justice JP Devadhar are also part of the probe committee. The court also named Infosys co-founder Nandan Nilekani, veteran banker KV Kamath and lawyer Somasekharan Sundaresan to the committee.

The court passed this order in a bunch of pleas that sought its intervention in the crash of Adani stocks after the Hindenburg report was released on January 24.