Adani-Hindenburg Row: SC To Hear Pleas on May 12

The Supreme Court will hear the pleas on the Adani-Hindenburg row on May 12 in which it asked market regulator SEBI to probe within 2 months allegations of stock price manipulation by the Adani group and lapses in regulatory disclosure.

The top court set up a panel to look at protection provided to the Indian investors after a strong report by US short-seller Hindenburg wiped out more than USD 140 billion of the Indian conglomerate’s market value.

As per the cause list uploaded on the apex court website, a bench comprising Chief Justice DY Chandrachud, Justices PS Narasimha, and JB Pardiwala is scheduled to hear the pleas.

However, the hearing assumes significance in the wake of media reports that the 6-member committee, headed by former apex court judge Justice AM Sapre, constituted for assessing the existing regulatory framework and making recommendations to strengthen the process, that has submitted its report to the apex court in a sealed cover.

Recently, market Regulator SEBI moved to the apex court seeking a 6-month extension to complete its probe into allegations of stock price manipulation by the Adani group that lapses in a regulatory disclosure.

In an application moved before the court, the Securities and Exchange Board of India (SEBI) that has submitted for 6 more months for ascertaining possible violations related to “misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions”.

The SEBI plea stated that “Pass an order extending the time to conclude the investigation as directed by this Court by the common order dated March 2 by a period of 6 months or such other period as this court may deem fit and necessary in the facts and circumstances of the present case.”

One of the PIL petitioners, advocate Vishal Tiwari, has opposed the SEBI’s plea, saying that the market regulator has already got sufficient time to examine, inspect, collect and seize the relevant documents.
The top court, stated while protecting the setting up of the committee that it was appropriate to have a panel of experts in order to protect Indian investors against the volatility of the kind which has been witnessed in the past.

The court-appointed Justice Sapre panel which is to be provided assistance by the Centre and other statutory agencies including the SEBI chairperson.

On February 10, the top court has stated the interest of Indian investors needs to be protected against market volatility in the backdrop of the rout of the Adani Group stocks and asked the Centre to consider setting up a panel of domain experts headed by a former judge to look at strengthening the regulatory mechanism. The Centre agreed to the apex court’s proposal.

Till now, 4 PILs have been filed in the top court on the issue that includes lawyers ML Sharma, Vishal Tiwari and Congress leader Jaya Thakur.

Therefore, the Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.