SC dismisses plea seeking direction to SEBI to finish Adani-Hindenburg probe
This story was originally published at 16:23 IST on 27 January 2025
Register to read our real-time news.Informist, Monday, Jan. 27, 2025
NEW DELHI – The Supreme Court on Monday dismissed an application seeking directions to the Securities and Exchange Board of India to finish its pending investigation into the US-based Hindenburg Research's allegations against the Adani Group, and give its conclusion.
The petitioner, Vishal Tiwari, had also complained that the Supreme Court Registry had refused to admit his application. The court on Monday upheld the registrar's refusal to accept this application. Tiwari had also sought a direction from the court to SEBI and the government to file a status report on the progress in strengthening Indian investors' interest, based on the suggestions by the Sapre committee.
In March 2023, the top court had formed a six-member committee headed by former Supreme Court judge A.M. Sapre to investigate the research firm's allegations of stock manipulation against the Adani Group. In its report, the committee said it could not conclude that there was regulatory failure by SEBI in the case. The court asked the government and SEBI to take into consideration the Sapre panel's recommendations to strengthen Indian investors' interest.
In the Adani-Hindenburg case, the top court on Jan. 3, 2024, had said there was no ground to transfer the SEBI's probe either to a special investigation team or the Central Bureau of Investigation. It refused to give any directions or interfere with the SEBI's jurisdiction, noting that the latter's regulations do not suffer from any infirmities. Noting that the SEBI has completed investigation in 20 out of 22 matters in the Adani-Hindenburg case, the apex court had directed the market regulator to complete its probe in the remaining two cases within three months.
The petitioner also highlighted the report published in August by the US-based short-seller, in which it had alleged that SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, held stakes in offshore funds which were also allegedly used by Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani, to invest in Indian stocks, including in Adani Group companies. This raised the prospect of conflict of interest in SEBI's investigation of the Hindenburg Research's previous allegations against the Adani Group, the report had said.
The petitioner said that Buch had denied these allegations as baseless and the apex court had also held that third-party reports cannot be considered. "But, this all has created an atmosphere of doubt in the minds of public and investors and in such circumstances, it becomes incumbent for SEBI to conclude the pending investigations and declare the conclusion of the investigations," Tiwari said.
He had also sought the court's direction to the government and SEBI to provide a report on the share market crash and loss to investors on Jun. 4, the day when the results of the General Election were declared. The Indian equity market saw its biggest intraday crash in over four years after the trends in the counting of votes showed that Modi's Bharatiya Janata Party was unlikely to get a majority on its own. The benchmark Nifty 50 ended 5.9% lower on the day of the results. The stock market had risen 3.3% the previous day after exit polls predicted the BJP was likely to win the elections comfortably.
The top court had heard four petitions by advocates Vishal Tiwari and M.L. Sharma, Congress leader Jaya Thakur, and another individual, Anamika Jaiswal, which were filed in the wake of Hindenburg's report accusing Adani Group companies of "pulling the largest con in corporate history". Shares of Adani Group companies had crashed after the US-based short seller Hindenburg Research had published its report in January 2023.
On Monday, shares of Adani Enterprises ended 2.4% lower at INR 2,259.70 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
