Image source: Indian Express
The Supreme Court has said that it may grant a 3 month extension to market regulator SEBI to probe into stock market manipulation, overseas investments and offshore entities by the Adani group. The market regulator had in an application before the top court on 29th April sought a 6 month extension to probe into the issue given many complex issues involved in the matter but the SC bench comprising of CJI DY Chandrachud, JB Pardiwala and PS Narsimha said that 6 months cannot be granted as minimum time and that there has to be some alacrity in the work. The court also said that it may list the case in mid-August and have the report then.
After the US based Hindenburg Research published a report about ‘brazen’ stock market manipulation in the Indian Stock market by the Adani group by the use of various Mauritius, Singapore based offshore entities, the Indian markets had suffered a huge setback. It is in backdrop that the Supreme Court had ordered the market regulator to probe into the issue and submit a report within 2 months to ‘protect the interest of investors’. The order to start the investigation was given on March 2.
Along with the SEBI the Apex Court had also appointed a panel led by Retired Justice AM Sapre to publish the report on the issue. While the panel has submitted the report to the top court, the bench said that they will read the report carefully and list the matter on 15th May. It is on this day that the Court will hear the plea by SEBI and other 4 petitioners in the case including one by Congress Leader Jaya Thakur.
SG Tushar Mehta appearing for the market regulator had said that the market regulator had asked for the bank report, statements and other important documents from the foreign banks and that a complex process as this requires a time minimum of 6 months. But the court responded that it had given initial 2 months’ time to Both SEBI and AM Sapre committee and that it would not be right for it to extend the time by 6 months now.
Also the top Court while clarifying to petitioner Jaya Thakur had said that they said nothing about the regulatory failure on the part of SEBI and also cautioned them to be careful while making the allegations.
Advocate Prashant Bhushan appearing for one of the petitioners had said that the market regulator should make public the investigation it had done till now. The bench responding to Bhushan said that it would not be proper for them to disclose it as of now.
Hindenburg Research is a short selling firm based in the US which published a report about the alleged brazen stock manipulation by the Adani Group since 2016. It named how the Adani family was involved in the alleged fraud.
As a result of this report the conglomerate lost nearly $140 billion in the stock market and had to roll back its fully subscribed FPO from the market. Many credit ratings had also lowered the ratings of the Adani group and its bonds.
While the Indian opposition used this issue to establish the corny capitalism connection between the ruling BJP government and Adani group in the floor of the parliament, the BJP largely remained silent.
