Supreme Court on Wednesday upheld Securities and Exchange Board of India (SEBI) probe into the Adani-Hindenburg case, saying that no conflict of interest has been found in the expert panel. Supreme Court said SEBI is capable enough to probe Adani and refused to set up a Special Investigation Team (SIT).
The Supreme Court was pronouncing its verdict on a batch of petitions on the Adani-Hindenburg row over allegations of stock price manipulation by the Indian corporate giant. A bench comprising Chief Justice DY Chandrachud and justices JB Pardiwala and Manoj Misra delivered the judgement on the PILs filed by lawyers Vishal Tiwari, ML Sharma and Congress leader Jaya Thakur, and Anamika Jaiswal.
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The Supreme Court has ordered SEBI to complete the probe in three months of two pending cases out of 24 in the Adani-Hindenburg issue. The Court has also told the Central government and SEBI to consider the recommendation of an expert committee to strengthen the regulatory framework.
The top court had asked the SEBI to independently investigate the matter and constituted a committee of experts headed by former SC judge Justice AM Sapre.
While pronouncing the verdict, CJI Chandrachud said the power of the top court to enter regulatory domain of SEBI was limited.
Responding to the verdict, Adani Group Chairman Gauram Adani said "truth has prevailed. Taking to microblogging platform X, Adani said, "The Hon'ble Supreme Court's judgement shows that: Truth has prevailed. Satyameva Jayate."
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"I am grateful to those who stood by us. Our humble contribution to India's growth story will continue. Jai Hind," he added.
The PIL alleged that the Adani Group, considered close to the Modi government, inflated its share prices and, after the report of the short seller Hindenburg Research, the share value of various group entities fell sharply.
While reserving the verdict also, the SC bench had said it had no reason to "discredit" SEBI, which probed allegations against the Adani group, as there was no material before it to doubt what the market regulator had done. It said the court does not have to treat what was set out in the Hindenburg report as a "true state of affairs".
The Supreme Court had asked the SEBI as to what it intends to do in the future to ensure investors don't lose wealth due to volatility in stock market or short-selling.
The Adani Group stocks got hit after Hindenburg Research made a litany of allegations, including those about fraudulent transactions and share-price manipulation, which were dismissed by the business conglomerate that termed the charges as lies, saying it complies with all laws and disclosure requirements.
