Sunday, April 14, 2024

SEBI Makes Substantial Progress in Adani-Hindenburg Case, Seeks 15 More Days from Supreme Court

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The Securities and Exchange Board of India (SEBI) has made substantial progress in its investigation into the allegations made by US short-seller firm Hindenburg Research against Adani group companies. The market regulator has completed investigating 17 out of the 24 transactions it had taken up for probe, and has sought more information from other regulators and foreign jurisdictions to plan a further course of action.

In an application filed with the Supreme Court on Monday, Sebi said that it needs 15 more days to complete the investigation and submit its report. The apex court had earlier granted Sebi an extension until August 14 to conclude its probe.

Sebi’s investigation is focused on allegations that Adani group companies engaged in fraudulent accounting practices, undisclosed related party transactions, and insider trading. Hindenburg Research had made these allegations in a report published in January 2023.

Adani group has denied all the allegations made by Hindenburg Research. The group has said that it is cooperating with Sebi’s investigation and is confident that the truth will come out.

The Supreme Court is likely to hear Sebi’s application for a 15-day extension on Tuesday. It remains to be seen whether the court will grant the extension.

The Adani-Hindenburg case is a major test for Sebi. The market regulator has been under pressure to crack down on corporate malfeasance, and the outcome of this case will be closely watched.

If Sebi is able to prove that Adani group companies engaged in wrongdoing, it will be a major victory for the regulator. It will also send a strong message to other companies that they cannot get away with fraud.

However, if Sebi is unable to prove any wrongdoing, it will be a setback for the regulator. It will also raise questions about Sebi’s ability to investigate complex corporate cases.

The next few weeks will be crucial for Sebi. The market regulator needs to gather enough evidence to prove that Adani group companies engaged in wrongdoing. If it is unable to do so, it will face a major challenge in its efforts to crack down on corporate malfeasance.

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