Adani-Hindenburg row: Not investigating Adani group since 2016 as claimed, SEBI to Supreme Court
Satya Prakash
New Delhi, May 15
Denying the allegation that it has been investigating the Adani Group since 2016, SEBI on Monday reiterated its request with the Supreme Court for grant of six additional months to complete the probe into allegations of stock price manipulation as the transactions in question were “highly complex”.
“The allegation that the Securities and Exchange Board of India has been investigating Adani since 2016 is factually baseless. The reliance sought to be placed on the investigation pertaining to GDRs (Global Depository Receipts) is wholly misplaced,” SEBI said in a fresh affidavit filed in the top court.
“In respect of the investigation/examination relating to 12 transactions referred to in the Hindenburg Report, prima facie it is noted that these transactions are highly complex and have many sub-transactions across numerous jurisdictions and a rigorous investigation of these transactions would require collation of data/information from various sources including bank statements from multiple domestic as well as international banks, financial statements of onshore and offshore entities involved in the transactions and contracts and agreements, if any, entered between the entities along with other supporting documents,” SEBI said.
“Thereafter, analysis would have to be conducted on the documents received from various sources before conclusive findings can be arrived at,” it said.
“The application for extension of time filed by SEBI is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable,” it said.
A three-judge Bench led by CJI DY Chandrachud on Monday deferred to May 16 the hearing on SEBI’s plea for additional six months to complete the probe as it could not take up the matter for paucity of time.
SEBI said it has already approached 11 overseas regulators under the Multilateral Memorandum of Understanding with the International Organisation of Securities Commissions with respect to its investigation into Minimum Public Shareholding norms.
Noting that there needed to be some “alacrity”, the Supreme Court had on Friday told SEBI that it can grant three additional months, and not six months, to SEBI to probe into the allegations of stock price manipulation by the Adani Group and any possible lapses in regulatory disclosures.
“We cannot grant six months now. There needs to be some alacrity in the work. Put together a team. We can list the case in August mid and have the report then… Six months cannot be given as a minimum time. SEBI cannot take an indefinitely long period and we will give them three months,” the Bench had told Solicitor General Tushar Mehta, who represented SEBI.
Stating that it has received a report from an expert panel headed by Justice (Retd) AM Sapre, the Bench had said it will pass orders after perusing the report.
In its March 2 order, the Bench had asked SEBI to expeditiously conclude the investigation within two months and file a status report.
However, in an application filed before the expiry of the two-month period, SEBI submitted that for ascertaining possible violations related to “misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions”, it would take six more months to complete the exercise.
The Adani Group stocks tanked on the bourses after Hindenburg Research made a litany of allegations, including fraudulent transactions and share-price manipulation, against the business conglomerate led by Gautam Adani. The Group has dismissed the charges as lies, saying it has been complying with all laws and disclosure requirements.
