Keywords: SEBI, Apex court, conglomerate, Foreign investment
In a significant legal development, an application has been lodged in the Supreme Court of India, challenging the Securities and Exchange Board of India (Sebi) over the prolonged duration of the investigation into the Adani-Hindenburg matter. The applicant is seeking contempt proceedings against Sebi, alleging non-compliance with the timeline stipulated by the apex court.
The Supreme Court had mandated Sebi to conclude its investigation and submit a comprehensive report on the allegations put forth by US-based Hindenburg Research against the Adani Group. These allegations encompassed claims of fraudulent transactions and manipulation of share prices. The court had set August 14 as the deadline for Sebi to furnish its findings.
Earlier representations made by Sebi to the Supreme Court indicated progress in the investigation, with the regulatory body stating that it had completed its probe into all but two of the allegations against the Adani Group. However, the delay is attributed to Sebi awaiting crucial information from five tax havens, shedding light on the actual owners behind foreign investments in the conglomerate.
The petitioner has not only called for contempt proceedings but has also urged the committee overseeing the Hindenburg allegations to initiate an inquiry into claims of millions of dollars being invested in publicly traded Adani stocks through Mauritius-based opaque investment funds. This comes in the wake of the Organised Crime and Corruption Reporting Project (OCCRP), a global network of investigative journalists, releasing exclusive documents in September.
According to OCCRP, the documents allegedly point to substantial investments through opaque funds, utilizing files from multiple tax havens, bank records, and internal Adani Group emails. The Adani Group vehemently denies these claims, terming them as “recycled allegations” and asserting, “These news reports appear to be yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report.”
As the legal battle unfolds in the Supreme Court, market participants and observers are keenly watching for the resolution of this high-profile case that has ramifications for both the Adani Group and the regulatory framework overseeing financial markets in India.
Businesstoday.in , https://www.businesstoday.in/latest/corporate/story/adani-hindenburg-matter-fresh-plea-filed-in-sc-for-contempt-case-against-sebi-406280-2023-11-19
thehindubusinessline.com, https://www.thehindubusinessline.com/companies/plea-in-sc-for-initiation-of-contempt-against-sebi-for-not-completing-probe-in-adani-hindenburg-matter/article67550865.ece
Written by: shalmali ugare., College: DESSNFLC, PUNE, Sem: 3rd intern under legal vidhiya
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