Adani-Hindenburg Case: Key Takeaways From Supreme Court Panel's Report

The Supreme Court-appointed committee to look into the Adani-Hindenburg case did not find any regulatory failures. The panel also didn't raise any issues with the disclosures made by the Adani Group.

The Securities and Exchange Board of India is currently investigating the minimum public shareholding and related-party disclosures, said the Justice Sapre-headed committee, which submitted its report on May 12. These investigations will be disclosed to the apex court, it said.

BQ Prime has reviewed a copy of the report. Here are the key findings:

Key Takeaways

• Adani Group has disclosed all beneficial owners.

• SEBI hasn't raised any issue with Adani's declaration of beneficial owners.

• Retail shareholding in Adani Group has gone up since the Hindenburg report.

• There were short sellers who profited post-Hindenburg report, which requires investigation.

• No prima facie violation of existing rules or laws was found.

• The report points to an ongoing investigation by SEBI on minimum public shareholding and related-party transactions.

• The report says SEBI still doesn’t have enough information on 13 overseas entities and 42 contributors to assets under management.

• The report asks SEBI to decide, pending the discovery of 13 entities, whether any further case is made.

• The report finds that SEBI, while referring the case to ED, did not make any prima facie charge.

• Adani stocks have stabilised at a new price discovery without destabilising Indian markets.

• The report acknowledges measures undertaken by Adani to comfort investors.