Adani-Hindenburg Case Verdict: Supreme Court gives SEBI 3 months to complete probe, says no questions about regulator’s functioning

Adani-Hindenburg Case Verdict: The top court said that the allegations against the group have already been rejected by itself and the Customs, Excise & Services Tax Appellate Tribunal (CESTAT).

Adani-Hindenburg Case Verdict: The top court said that the matter will not be referred to a Special Investigation Team (SIT). | File image | Image credit: Reuters

Adani-Hindenburg Case Verdict: The Supreme Court on Wednesday allowed capital market regulator SEBI to continue investigating the Adani-Hindenburg matter while stating that there are no questions about the functioning of the regulator. The apex court also said that the matter will not be referred to a Special Investigation Team (SIT). All of the Adani group stocks were in the green minutes after the development.

The top court said that the expert group did not find any discrepancies in the probe conducted by SEBI. The bench, headed by Chief Justice DY Chandrachud, also said that it cannot regulate SEBI's power of investigation, stating that the court has limited power to enter the regulatory domain of the agency.

It also said that the allegations against the group have already been rejected by itself and the Customs, Excise & Services Tax Appellate Tribunal (CESTAT).

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The court was delivering its verdict on a batch of petitions on the Adani-Hindenburg row over allegations of stock price manipulation by the corporate giant.

Adani-Hindenburg: The Supreme Court says the power of this court to enter the regulatory framework of SEBI is limited pic.twitter.com/923aAVfVjG

— ANI (@ANI) January 3, 2024

Giving the regulator another three months to investigate the remaining two of the total 24 issues, the top court said the matter will not be referred to a Special Investigation Team (SIT). The facts of the case do not warrant the transfer of the probe to SIT or any other agency, the court held.

It directed agencies to probe any losses caused by the matter.

At 11 am, while Adani Enterprises shares were up 2.8 per cent, the stocks of Adani Ports, Adani Power, Adani Energy, Adani Green, Adani Total, Adani Wilmar, ACC, Ambuja and NDTV held on to the green with gains in the range of up to 9.8 per cent.

Last year, a litany of allegations, including fraudulent transactions and share price manipulation, against the Adani conglomerate by US-based Hindenburg Research triggered a riot in the Indian group's stocks. The Adani group dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

With inputs from agencies

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