Adani-Hindenburg case: Sebi seeks more time for probe, says arriving at conclusion prematurely won't do justice

Capital market regulator Securities and Exchange Board of India (SEBI) told the Supreme Court on Monday that any premature conclusion of its investigation into the Adani group's possible lapses of regulatory disclosures will be "legally untenable" and not "serve the ends of justice". Seeking an extension to investigate the Adani-HIndenburg case, the regulator that "it is complex and involves many complicated transactions." The top court was hearing pleas in the Adani-Hindenburg case, after SEBI sought a six-month extension to complete probe into allegations of stock price manipulation by the Adani group and lapses in regulatory disclosure.

A majority of Adani group stocks suffered losses on Monday, including the conglomerate's flagship, Adani Enterprises.

“In respect of the investigation/examination relating to 12 transactions referred to in the Hindenburg Report, prima facie it is noted that these transactions are highly complex and have many sub-transactions across numerous jurisdictions and a rigorous investigation of these transactions would require collation of data/information from various sources,” SEBI's petition read.

SEBI also said that with respect to the investigation of the case, the regulator made the first request to overseas regulators on October 6, 2020. The Indian market regulator said it approached 11 regulators under the multilateral memorandums of understanding with the International Organization of Securities Commissions.  

It said that the first such request was made as early as October 6, 2020.

On Friday, the top court had said it would consider granting three more months to SEBI to wrap up its probe into allegations of stock price manipulation by the Adani group.

The Supreme Court said it was to ascertain whether there was a regulatory failure that it had appointed an expert committee whose report it has received.    

SEBI's ongoing investigation comes after US-based Hindenburg Research in January raised several governance concerns around the Adani group, and alleged improper use of tax havens and stock manipulation by the ports-to-energy conglomerate. The Adani group has denied all the allegations.

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