After the markets regulator requested an additional six months to look into the conglomerate’s business practices because they were “highly complex,” the court issued the order.
SEBI To Submit A Status Report By August 14
As part of its investigation into the scandal related to the Hindenburg research paper on the Adani Group of Companies and accusations against its parent company, the Supreme Court gave the Securities and Exchange Board of India (SEBI) until August 14 to submit a status report on Wednesday.
The market regulator requested extra time
The markets regulator requested an additional six months to look into the conglomerate’s dealings because they were “highly complex,” and a bench consisting of Chief Justice of India DY Chandrachud, Justices PS Narasimha, and JB Pardiwala issued the ruling.
The court noted that the expert committee had submitted its report, and the case was postponed until after the summer break to allow for the court’s analysis.
“The expert committee requested to help the court and the panel to hold more hearings and take up any additional aspect or suggestion for the proceedings,” the statement reads.
The SEBI admitted that it had not been investigating any Adani Group companies since 2016
The SEBI admitted in an affidavit that it had not been investigating any Adani Group companies since 2016, contrary to what had previously claimed during the last hearing.
Related Read | Hindenberg Reseacrh Report On Adani
Advocate Prashant Bhushan claimed, “This was an attempt at protecting the company during today’s hearing.”
“They must publicly state what happened to the investigation that has been ongoing since 2016. Alarm bells need to go off if the price of Adani shares increases abnormally by 5,000% or more. In 2021, there will be statements made in parliament, he claimed.
In response to these claims, Solicitor General Tushar Mehta said SEBI has the resources and takes care of the problem.
The Hindenburg Research report has generated controversy
Regarding the allegations against the conglomerate, the Hindenburg analysis of the Adani Group of Firms has generated controversy.
The Supreme Court authorized SEBI to continue its investigation in a decision made on March 2. The inquiry had to be finished by May 2.
After that, the expert committee turned in its report, and the SEBI requested an extension.
The SEBI had three months to complete its inquiry
Four petitions alleging fraud by the conglomerate through inflated share prices have been filed with the Supreme Court in response to a recent report by short-seller Hindenburg Research.
The share prices of several Adani companies reportedly dropped by $100 billion as a result of the report.
The bench had indicated on Friday that it was inclined to give the Securities and Exchange Board of India (SEBI) only three more months to wrap up its investigation into the stock crash, rather than the six months it had requested.