Adani-Hindenburg case reaches court once again, review petition on SC’s decision
The dispute between American short seller firm Hindenburg and Gautam Adani Group has once again reached the court. In fact, a review petition has been filed against the decision of the Supreme Court giving green signal to the investigation of stock market regulator SEBI. This petition has been filed by Anamika Jaiswal.
What did the petitioner say?
Petitioner Anamika Jaiswal has argued that there are sufficient grounds to review the order passed by the Supreme Court on January 3. Despite some positive statements from the Supreme Court, SEBI’s investigation into whether the Adani Group has violated securities laws is still ongoing. According to the petitioner, SEBI has updated the status of only 24 investigations as completed or incomplete in its status report. Until the findings of the SEBI investigation are publicly reported, it cannot be determined that there has been no regulatory failure.
SEBI investigation
Let us tell you that in January, the Supreme Court had asked SEBI to complete the investigation in 3 months. SEBI said in its status report that 22 out of 24 investigations were final and 2 cases were under investigation. Among SEBI’s 22 cases are two on share price manipulation, 13 on failure to disclose related party transactions (RTP), five on violation of insider trading rules and one on violation of rules on foreign portfolio investors (FPIs) and takeovers. A report is included.
What is the matter
In fact, in the month of January last year, in a report by short seller Hindenburg Research, many serious allegations were made against the Adani Group. It was alleged that Adani Group had inflated its share prices. Following the publication of these allegations, the share value of Adani group companies reportedly fell by a massive US$100 billion. Adani Group had rejected the allegations as false and said it complied with all laws and disclosure requirements.
Let us tell you that during the hearing of this case, the apex court asked SEBI to investigate the matter independently. At the same time, an expert committee was also constituted under the chairmanship of retired Supreme Court judge Justice AM Sapre. In May last year, the expert committee in its prima facie report had found no lapse on the part of SEBI.
