Adani -Hindenburg Case: SC asks SEBI to complete probe in 3 months
The News Freedom
New Delhi, January 3
The Supreme Court bench comprising Chief Justice of India DY Chandrachud, PS Pardiwala, and Manoj Misra on Wednesday emphasized the limited scope of the apex court to intrude into the regulatory jurisdiction of SEBI (Securities and Exchange Board of India).
The court clarified that its judicial review capacity is primarily aimed at assessing potential violations of fundamental rights. This ruling emerged from a set of petitions seeking a court-monitored or CBI investigation into allegations by the US-based firm Hindenburg Research against the Adani group, specifically concerning stock market violations, according to media reports.
Highlighting SEBI’s regulatory diligence, the bench asserted there was no evident lapse on the regulator’s part, stating that SEBI cannot be expected to conduct its operations solely based on media reports, although such reports can serve as inputs for its proceedings.
The apex court additionally instructed SEBI to conclude its inquiry into two out of 24 pending cases within three months.
The case revolves around claims made in a report by Hindenburg Research, accusing Adani of inflating its share prices. This publication allegedly triggered a substantial decline in the share value of multiple Adani companies, amounting to an estimated USD 100 billion loss.
The Adani Group vehemently refuted these allegations, dismissing them as baseless lies and affirming its adherence to all legal statutes and disclosure requisites.