The Securities and Exchange Board of India (SEBI) has requested a six-month extension from the Supreme Court to complete its investigation into the allegations made against the Adani Group by Hindenburg Research. SEBI stated that the investigation into the 12 suspicious transactions involving the Adani Group is complex and requires collating data from various sources, detailed analysis, and verification of submissions made by the companies involved.
Seven listed Adani companies and their subsidiaries, including Adani Enterprises Limited, Adani Power Limited, Adani Transmission Limited, Adani Green Energy Limited, Adani Ports and Special Economic Zone Limited, Adani Total Gas Limited, and Adani Wilmar Limited, are under scrutiny. SEBI has asked these companies to submit documents and information related to the allegations.
SEBI has identified possible violations in various areas, including Related Party Transactions (RPT) disclosures, Corporate Governance matters, Minimum Public Shareholding (MPS) norms, share price manipulations, FPI Regulations, ODI Norms, Insider Trading Regulations/FUTP Regulations, and norms of short selling. The investigation may also require the deposition of key managerial persons.
SEBI mentioned that, under normal circumstances, completing the investigation of these transactions would take at least 15 months. However, the regulatory body is making efforts to conclude the investigation within six months due to the complexity of the matter.
The Supreme Court had previously directed SEBI to expedite the investigation and file a status report by May 2. In addition, the court established a six-member expert panel to investigate regulatory failures and enhance investor awareness. The expert panel has been instructed to submit its report to the court within two months.
The expert committee was formed in response to allegations made by Hindenburg Research, which accused the Adani Group of inflating revenue and stock prices through a network of companies in tax havens while accumulating debt. The Adani Group has consistently denied these allegations.
SEBI's investigation aims to determine if there have been any violations of SEBI rules and manipulation of stock prices by the Adani Group, as directed by the Supreme Court. With the requested extension, SEBI seeks additional time to conduct a thorough and comprehensive investigation into the allegations against the Adani Group.