Adani-Hindenburg: Out of 24 investigations, 22 are final and two are interim in nature

Satya Prakash

New Delhi, August 25

The Securities and Exchange Board of India (SEBI) on Friday told the Supreme Court that 22 of the 24 investigations into allegations of market manipulation against Adani Group levelled in the Hindenburg report have been finalised while the remaining two were of interim nature.

The market regulator – which had earlier this month sought 15 more days from the top court to complete the probe — said it “shall take appropriate action based on the outcome of the investigations in accordance with law…”

In its latest report submitted to the Supreme Court, the SEBI said, “Out of the said 24 investigations/examinations, 22 are final in nature and 2 are interim in nature. As on date, the said 22 final investigation reports and one interim investigation report are approved by the Competent Authority in accordance with SEBI’s extant practice and procedures. In the remaining one matter, interim findings are approved by the Competent Authority.”

It further submitted “that with respect to the interim investigation reports that SEBI has sought information from external agencies/entities and upon receipt of such information will evaluate the same vis-à-vis the interim investigation report to determine further course of action, if any, in the same matters.”

In its previous report submitted in mid-August it had said that only 17 of the probes were final and complete.

SEBI had earlier told the Supreme Court that there was no “sky-rocketing” of securities violations as mentioned by the court-appointed Expert Committee that looked into Hindenburg Research report on Adani group of companies and asserted that it has addressed concerns raised by the panel in its report.

In an application seeking “appropriate orders” filed in the top court, it had submitted its views on the recommendations made by the Expert Committee on the Adani-Hindenburg case.

In its report submitted to the top court in May, the Expert Committee had said there was no evidence of stock price manipulation in Adani Group companies. However, it had observed that the proceedings initiated by SEBI in 202I-22 have skyrocketed to 7,195 cases as compared with 562 cases in 2020-21 and 249 cases in 2019-20.

“In this respect, it is submitted that the increase of Adjudication proceedings initiated in 2021-22 i.e. 7195 was an outlier due to the large number of adjudication proceedings in Illiquid Stock Options (ISO) matters initiated that year. If ISO matters, being the anomaly, are netted out for FY 2021- 22, the total number of proceedings initiated in FY 2021-22 would only be 416,” SEBI had submitted.

The Adani Group has dismissed the charges, saying it has been complying with all laws and disclosure requirements.