Hindenburg-Adani case prima facie not suspicious, SEBI to probe further: Supreme Court committee

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The report of the expert committee set up by the Supreme Court to probe the Adani-Hindenburg affair was announced on Friday. On January 24, 2023 American short-selling firm Hindenburg released a report on Adani Group of companies, alleging overvaluation of the company’s stock prices and accounting irregularities. However, Hindenburg’s allegations were rejected by the Adani group. But the opposition created a ruckus on this issue and when the matter reached the Supreme Court, the Supreme Court formed a special committee to investigate. Now the report of this committee has come out.

What was revealed in the report of the committee?

The report of the expert committee constituted by the Supreme Court stated that the Adani group had disclosed all the beneficial owners. It is further stated that there is no allegation by SEBI that they are rejecting the declaration of beneficial owners of Adani. Adani’s retail stake has increased since the Hindenburg report. The report clearly states that no prima facie violation of existing rules or laws has been found.

stock prices stabilized

The report said that Sebi still does not have sufficient information about 13 foreign entities and 42 contributors to assets under management. The report frees SEBI to examine whether any other case is made out of the 13 entities whose probe is pending. Sebi did not make a prima facie allegation while referring to the ED’s case in the report. The report found that Adani’s shares settled at new prices without destabilizing Indian markets. The report also appreciated Adani’s efforts to stabilize the stock.

need to complete the investigation on time

The special committee constituted by the Supreme Court in its report said that all investigations need to be completed within a time limit. The Committee cannot at present conclude that there has been a failure of the Director on the allegation of price manipulation. The committee in its report said that the market regulator has submitted its findings regarding the ownership of group entities. The report added that Adani shares were in fact more volatile due to the Hindenburg report and its consequences.