Adani-Hindenburg case: Supreme Court reserves order, questions SEBI on probe volatility in market
Adani-Hindenburg case: Supreme Court while hearing the Adani-Hindenburg matter remarked that it is easy to make allegations against anyone and opined the petitioners to show some responsibility while leveling charges against any party.
A bench of Chief Justice of India DY Chandrachud, also comprising justices JB Pardiwala and Manoj Misra passed the remarks when one of the petitioners raised questions over members of the expert committee.
Highlighting the representation of Adani in various forums including in the SEBI Board, CJI DY Chandrachud remarked that he is not an in-house counsel he was a lawyer and he appeared in 2006 and this conflict arose 17 years later. There has to be some responsibility for the allegations being leveled.
The court also empphasised that it is easy to make allegations and one must be also very careful.
We are not giving a character certificate to anyone, added Supreme Court.
When the hearing commenced today, Solicitor General Tushar Mehta told the top court that SEBI is not seeking an extension of further investigation matters relating to the Hindenburg report.
Out of 24 cases in the Adani-Hindenburg matter, investigations in 22 cases are over
For the remaining two cases, they need information from foreign regulators and others and they have been in consultation with them, SG Mehta informed the court.
The court then said that it had intervened in the matter due to the extreme volatility of the stock market and sought to know what is SEBI planning to do for such kind of volatility and planning to protect investors in cases like short selling.
The court remarked that SEBI, a statutory body looks into stock market frauds. SG Tushar Mehta said that there is a growing tendency to plant stories outside India to influence decisions within India.
After hearing the matter in length, the court reserved the order on various aspects related to the issue.
Earlier, the Securities and Exchange Board of India (SEBI) filed a status report before the Supreme Court apprising it that out of 24 investigations arising out of the Hindenburg report, 22 are final in nature and 2 are interim in nature.
The investigation was carried out in compliance with the directions of the top court's order dated March 2, 2023, SEBI has investigated 24 matters
The apex court was then hearing petitions pertaining to the Hindenburg report, including the constitution of a committee relating to regulatory mechanisms to protect investors' interests.
The January 24 Hindenburg report alleged stock manipulation and fraud by the conglomerate.
The Adani Group has attacked Hindenburg as "an unethical short seller", stating that the report by the New York-based entity was "nothing but a lie". A short-seller in the securities market books gains from the subsequent reduction in the prices of shares.
- With inputs from agencies
