Adani-Hindenburg Case: SEBI Moves Supreme Court Seeking Six Months To File Its Report

The Securities and Exchange Board of India has filed an application before the Supreme Court, seeking an extension of six months to complete its enquiry into the Adani Group-Hindenburg Research matter.

In its application, SEBI has stated that it would take further time to arrive at verified findings and conclude the investigation.

The apex court had in its March 2 order directed market regulator SEBI to investigate the allegations raised in the public interest petitions in the Adani-Hindenburg matter. The regulator is also looking into the market activity immediately preceding and post the publication of the Hindenburg report. The regulator was asked to expeditiously conclude the investigation within two months and file a status report.

On Saturday, in its submission before the court, the market regulator said that for ascertaining the allegations in the Hindenburg report, it would normally take at least 15 months to complete the investigation. However, SEBI said that it is making all reasonable endeavors to conclude the same within six months.

SEBI has submitted that “as is the case in most investigations, every layer of information received often leads to further layers of information that are required, sought, obtained and analysed and this process is particularly time consuming where there is a complex web of transactions”.

It has stated that allegations in the report are complex and have many sub-transactions and a rigorous investigation would require collation of data/information from various sources along with detailed analysis including verification of submissions made by the companies.

SEBI has also stated that it has submitted its interim findings to the expert committee, whose overarching remit is to look at whether existing frameworks are sufficient to protect investors in such instances.

The committee, led by Justice (retired) Abhay Manohar Sapre, was asked to give its suggestions in a sealed envelope within two months. Other members on the committee include OP Bhat, KV Kamath, Nandan Nilekani, Somashekhar Sundaresan, and retired Justice JP Devadhar.

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