Adani-Hindenburg probe: SEBI seeks 15 more days to conclude investigation

Indian market regulator SEBI has moved the Supreme Court and has asked for 15 more days to conclude probe into allegations of stock price manipulation by Adani group. The Securities and Exchange Board of India (SEBI), in its fresh application, said that it has examined and investigated 24 matters pertaining to the case.

SEBI has also informed the court that "it has progressed substantially". The regulator in its application has said that findings have been crystallised in 4 matters and is awaiting the approval of competent authorities. The investigation is in advanced stage in one matter and an interim report is under preparation in another.

The Supreme Court had said that the probe has to be concluded expeditiously by the extended time of August 14.

In October 2020, SEBI started its investigation on Adani Ports, power and infrastructure empire. The regulator looked at whether Adani used companies registered abroad to conduct business and pump up his share prices without properly disclosing affiliations. However, Adani has repeatedly denied wrongdoing and said it has made all required disclosures.

Based on this, Hindenburg research released its report on Adani in January 2023, alledging that the conglomerate has used aggressive and unconventional accounting practices to inflate its profits and understate its debt.

Also Read: Supreme Court panel on Adani-Hindenburg issue: Can't conclude regulatory failure by SEBI

In May, a Supreme Court appointed panel on the Adani-Hindenburg case has said that it was not possible to conclude if there has been a regulatory failure on the part of capital markets regulator SEBI. However the panel had also accused SEBI of having diluted rules that would have helped break through so-called opaque structures and the regulator’s job is made harder by India’s overlapping web of corporate laws that offer loopholes that the large businesses often exploit.

During the course of investigation, SEBI has had brought many changes into the disclosures from Foreign Portfolio investors. The board had approved changes mandating additional disclosures from foreign portfolio investors and granular information on their ownership and economic interests from September. SEBI is also considering to make Indian conglomerates to report transcations involving their unlisted group companies.