Updated on Jan 3, at 11 a.m.

The Supreme Court today refused to form any SIT or group of experts to conduct an investigation into the Adani-Hindenburg controversy saying that the media and third party reports were not conclusive proof.

“SEBI should take its investigation to its logical conclusion in accordance with law. The facts of this case do not warrant a transfer of investigation from SEBI,” held a bench presided over by CJI DY Chandrachud.

The Supreme Court asked the Central government to consider the suggestions made by the expert panel headed by former apex court judge Justice AM Sapre.

“The Government of India and SEBI will take any further actions as are necessary to strengthen the regulatory framework to protect investors and ensure the orderly functioning of the securities market,” it said.

Updated on Nov 24, 2023, at 5.40 p.m.

The Supreme Court has reserved the order on the Adani-Hindenburg case today. It has asked all parties to submit written arguments by Nov 27.

The Supreme Court, hearing a batch of pleas on the Adani-Hindenburg dispute, today asked the Union government and the SEBI to explain what steps they are taking to prevent investors’ loss in future. 

Moreover, solicitor general Tushar Mehta said that SEBI is not seeking any extension of time and 22 out of 24 investigations have already been finalised.

On the Hindenburg and OCCRP reports, the Chief Justice of India (CJI) DY Chandrachud emphasised that a publication’s work is not an absolute truth.

Steps to prevent investors’ losses in future

The bench, however, headed by CJI said: “One of the principal reasons which led us to intervene – was because of this extreme volatility of the stock market which had caused loss to investors’ wealth.”

“Now, what is SEBI intending to do to protect this kind of volatility due to short selling which leads to a loss of investor value,” asked the bench, also comprising Justices JB Pardiwala and Manoj Misra.

It asked if any element of wrongdoing has been found in SEBI’s investigation so far as short-selling is concerned.

In response, SG Mehta, appearing for the SEBI, said that in cases involving short-selling, the market regulator is taking legal action in accordance with the law.

“Wherever we found short selling, we will take action and we are taking action,” he said.

Mehta added that the government is considering ‘constructively with an ‘open mind’ the suggestions made by the court-appointed expert committee.

The SEBI, in an affidavit filed before the apex court, had opposed various suggestions made by former SC judge Justice AM Sapre-headed expert committee, including prescribing timelines for initiation of investigation and proceedings and said that ‘prescribing specific timelines to complete the investigation may compromise the quality of investigation’.

Adani-Hindenburg row

The apex court had earlier ordered the SEBI to probe into the allegations of stock price manipulation by the Adani group within two months and had formed an expert committee with the objective of reviewing and strengthening the existing financial regulatory mechanisms.

The controversial Hindenburg Research’s report, inter alia, alleged that the Adani Group of companies has manipulated its share prices, failed to disclose transactions with related parties and other relevant information concerning related parties in contravention of the regulations framed by the SEBI, and violated other provisions of securities laws.

The report about Indian billionaire Gautam Adani had led to a stock rout, erasing over $100 billion from his empire and pushing him down on the global rich list.

(With inputs from IANS)

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