The petitions, which have garnered significant attention, seek a court-monitored probe into the allegations of stock price manipulation by the Adani group of companies, as claimed in a report by Hindenburg Research.
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The Supreme Court of India is poised to announce a crucial judgment on January 3 regarding the petitions calling for an independent investigation into the Adani-Hindenburg issue. This decision, eagerly awaited by stakeholders and observers alike, follows the reservation of judgment by a bench led by Chief Justice of India DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, on November 24.
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The petitions, which have garnered significant attention, seek a court-monitored probe into the allegations of stock price manipulation by the Adani group of companies, as claimed in a report by Hindenburg Research. During the hearings, the bench noted the absence of substantial material to question the ongoing investigation by the Securities and Exchange Board of India (SEBI) and expressed confidence in the impartiality of the expert committee appointed by the Court to delve into the matter.
The controversy traces back to January 24, when Hindenburg Research, a US-based short-selling firm, released a damning report accusing the Adani Group of engaging in manipulative practices to inflate its stock prices. The Adani Group countered these allegations with a detailed 413-page response, vehemently denying any wrongdoing.
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In response to these developments, a series of Public Interest Litigations (PILs) were filed by Advocates Vishal Tiwari, ML Sharma, Congress leader Dr. Jaya Thakur, and activist Anamika Jaiswal, urging the Supreme Court to oversee an investigation into these allegations. On March 2, the Court responded by forming a committee to investigate the regulatory framework surrounding the issue. This committee, led by former Supreme Court judge Justice AM Sapre, includes notable figures such as Mr. OP Bhat, retired Justice JP Devadhar, Mr. KV Kamath, Mr. Nandan Nilekani, and Mr. Somasekharan Sundaresan.
SEBI, also directed to probe the allegations, initially had two months to complete its investigation as per the Supreme Court’s March 2 order. However, in May, SEBI sought a six-month extension, citing the complexity of the transactions involved. The Supreme Court granted an extension until August 14, 2023, and later, an additional 15 days upon SEBI’s request. SEBI informed the Court of substantial progress in its investigation, including the preparation of an interim report and ongoing collaboration with overseas regulators under the Multilateral Memorandum of Understanding (MMOU) with the International Organisation of Securities Commissions (IOSCO).
As the nation awaits the Supreme Court’s verdict, the outcome is set to have significant implications for the Indian financial market and the regulatory landscape. The decision will not only shed light on the Adani-Hindenburg saga but also potentially influence future corporate governance and market regulation practices in India.