New Delhi : The Supreme Court will hear again on Tuesday in the Adani-Hindenburg case. However, the Supreme Court had heard the matter on Monday as well, in which the market regulator Securities and Exchange Board of India (SEBI) refused to accept the recommendation of the expert panel appointed by the Supreme Court. SEBI told the Supreme Court on Monday in the Adani-Hindenburg case that the change in its regulation made in 2019 does not make it difficult to identify the beneficiaries of funds received from abroad and there is no violation of this, according to a report in news agency Bhasha. Action will be taken if found.
Expert panel gives clean chit to Adani group companies
The Securities and Exchange Board of India (SEBI) told the Supreme Court that it has consistently tightened rules related to beneficial ownership and related-party transactions. This is a major aspect in the allegations of rigging the share price of Adani Group companies. The court-appointed expert panel had said in its interim report that it did not find any evidence of wrongdoing in industrialist Gautam Adani’s companies and also did not see any failure at the regulatory level.
Investigation interrupted due to change in rules
The expert panel, however, noted several amendments to Sebi’s regulations between 2014 and 2019, saying these hampered the regulator’s ability to investigate and probe alleged violations in money flows from foreign institutions. . Without making any mention of the status report on its probe into the allegations against Adani Group, Sebi in its affidavit submitted in the court said that it does not agree with the expert panel about the difficulty in identifying the person having economic interest behind the foreign fund.
SEBI is not barred from investigating
The market regulator said that there is no restriction on SEBI to investigate the violation of any securities law. He said that he does not agree with the views of the expert panel and if there is any violation, action will be taken. A bench headed by Chief Justice of India (CJI) DY Chandrachud will hear the Adani-Hindenburg case on Tuesday as well.
Adani Group’s problems increased, US regulators started investigation on Hindenburg Research report
Hindenburg accused of fraud in the accounts
American financial research and investment company Hindenburg, in a report on 24 January 2023, accused the Adani Group of fraud in the books of account and improper use of foreign units along with manipulation of share prices. After these allegations, a big decline was registered in the shares of Adani Group. After this, the Supreme Court constituted an expert panel on March 2, 2023 to investigate the disclosure of transactions between related parties and irregularities in the price of shares.
