Supreme Court delays hearing on Adani-Hindenburg row, to address SEBI’s report, according to a report.

The Supreme Court reschedules hearing for Adani-Hindenburg case

The Supreme Court has rescheduled the hearing for the Adani-Hindenburg case involving the status report provided by the Securities and Exchange Board of India (Sebi), the capital markets regulatory body. As per media reports, the constitution bench led by the Chief Justice of India will persist in addressing petitions that contest the revocation of Article 370. Sebi submitted a status report on August 25 concerning its inquiry into the accusations made by short-seller Hindenburg Research in its January report against the diversified conglomerate Adani, which is involved in port and energy operations. Sebi has expressed that determining the financial stakes of shareholders among the 12 Foreign Portfolio Investors (FPIs) presents a challenging aspect of the investigation, as a significant number of these entities are located in offshore tax havens.

ED discovers short selling profits for 12 firms

According to a report from the Indian Express, the Enforcement Directorate (ED) discovered that short selling of Adani stocks resulted in profits for 12 firms. The short-sellers include two Indian companies, one registered in New Delhi and another in Mumbai. Furthermore, the promoters of the company based in Delhi have a SEBI order against them for allegations of deceiving investors and engaging in stock market manipulation. These concerns raised by Hindenburg Research led to a reduction of over $100 billion in the collective market worth of the conglomerate’s enterprises.

SEBI investigation nearing conclusion

Earlier on Friday, SEBI informed the Supreme Court that its investigation into the activities of the Adani Group was nearing its conclusion. One key finding had been violations in disclosing certain related-party transactions. The penalty for each violation by each entity could go up to a maximum of 10 million rupees ($121,000). The inquiry also found that holdings of offshore funds in some Adani companies were not in line with the rules. Indian law allows an offshore investor to invest a maximum of 10% in an Indian company via the foreign portfolio investor route, with any larger investment classed as a foreign direct investment.

(From media inputs)

Summary:

• The Supreme Court has rescheduled the hearing for the Adani-Hindenburg case involving the status report provided by Sebi.
• Sebi submitted a status report on August 25 concerning its inquiry into the accusations made by Hindenburg Research against Adani.
• The ED discovered that short selling of Adani stocks resulted in profits for 12 firms.
• SEBI informed the Supreme Court that its investigation into the Adani Group was nearing its conclusion.
• Violations in disclosing certain related-party transactions were found, and the penalty for each violation could go up to 10 million rupees.

Updated: 29 Aug 2023, 12:19 PM IST