Adani-Hindenburg Case: SEBI Wraps Up Investigation In 22 Of 24 Matters

The regulator has said that establishing economic interest shareholders of the FPIs remains a challenge.

The logo of SEBI is pictured on the premises of its headquarters in Mumbai, India. (Source: Shailesh Andrade/REUTERS)

The Securities and Exchange Board of India has filed its status report on the court mandated investigation into the Adani Group-Hindenburg Research matter.

The regulator has said that it has investigated a total of 24 matters and out of these, the investigation in 22 is final and at the interim stage in two.

SEBI said that it has sought information from external agencies. Upon receiving this information, the regulator will determine the further course of action in the matter if needed.

In the investigation pertaining to Minimum Public Shareholding norms, SEBI has said that its investigation covered 13 overseas entities of the Adani Group companies (12 FPIs and one foreign entity), but since many entities linked to these foreign investors are located in tax haven jurisdictions, establishing the economic interest shareholders of the 12 FPIs remains a challenge. However, it said that efforts are underway to gather details from five foreign jurisdictions.

The regulator has also apprised the court in its status report that it will take appropriate action based on the outcome of the investigation report.

Also Read: Adani-Hindenburg Case: SEBI Seeks 15 More Days To Submit Investigation Report

The Story So Far

After Hindenburg Research's report and Adani Group's counter in January, four public interest petitions were filed before the apex court. The PILs had broadly asked for directions regarding allegations against the Adani Group.

On March 2, the Supreme Court had directed SEBI to look into any disclosure breaches and possible price manipulation of Adani stocks in violation of existing laws.

The regulator was directed to submit its report within two months, but in April, SEBI made submissions before the apex court asking for six months to conclude its investigation.

The court, however, had granted time only till Aug. 14.

On Aug. 14, the market regulator filed an affidavit before the top court asking for 15 additional days to complete its investigation. This additional time is set to expire on Aug. 29.

Also Read: Adani-Hindenburg Case: Regulatory Failure Cannot Be Ascertained Yet, Says Supreme Court Panel

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WRITTEN BY
Varun Gakhar
Varun Gakhar is a legal journalist at NDTV Profit. He obtained his degree i... more
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