The Supreme Court on Monday adjourned the hearing on the plea of the Securities Exchange Board of India (SEBI) seeking six months extension to complete the investigation into allegations of stock price manipulation by the Adani Group. In January this year, US short-seller Hindenburg Research accused the Adani Group of stock manipulation, accounting fraud and other business malpractices.
The hearing could not take place on Monday due to paucity of time and on account of a scheduled hearing of certain matters before a special bench at 3 PM, reported PTI.
On May 12, a bench consisting of Chief Justice DY Chandrachud, Justice PS Narasimha and Justice JB Pardiwala, had said it would consider approving three months extension rather than six months to the markets regulator for concluding its investigation into the allegations raised by Hindenburg.
According to PTI report, SEBI said it needs more time to ascertain possible violations regarding "misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions".
The market regulator also said that any incorrect or premature conclusion without complete facts on record will be “legally untenable” and not serve the ends of justice.
SEBI referred to the complexities of transactions mentioned in the Hindenberg report to justify its plea for an extension of six months. Earlier, on 2 March, SEBI was given a two months extension to conclude its probe.
The apex court had also asked to set up a panel to protect Indian investors after the Hindenburg report resulted in the Adani Group losing more than $140 billion of its market value. In its directive, the Supreme Court asked for a six-member committee to be set up, under former Supreme Court Justice AM Sapre, to investigate the case.
