Supreme Court Sets Three-Month Deadline for SEBI's Adani Probe
The Supreme Court of India has directed the Securities and Exchange Board of India (SEBI) to conclude its ongoing investigation into the Adani Group within a three-month period. This order is a significant development in the case that began with allegations of corporate malfeasance and stock price manipulation levied by the American short-selling firm Hindenburg Research. Despite these accusations, which led to a sharp drop in Adani Group shares, the conglomerate has shown resilience in stabilizing its share prices and securing investments.
The court's ruling confirmed SEBI's jurisdiction over the matter, rejecting calls for a Special Investigation Team (SIT) and dismissing arguments about a perceived conflict of interest within an expert panel. The bench, led by Chief Justice D. Y. Chandrachud, emphasized SEBI's autonomy and competence in handling the investigation and ruled out an independent inquiry based solely on the Hindenburg report. Furthermore, the court tasked the federal government with implementing recommendations to strengthen the regulatory framework.
SEBI had closed 20 out of 22 complaints filed against the Adani Group, with the remaining allegations now set for resolution within the stipulated time frame. Following the verdict, Adani Group companies saw their stock values increase, with shares rising between 4 and 8 percent. The Supreme Court's decision comes as the Adani Group, led by Gautam Adani, works to maintain investor confidence and progresses with significant financial activities, including refinancing a $3.5 billion loan and committing to a $100 billion investment in green energy transition.
