Adani-Hidenburg Row: SC Extends Deadline For SEBI Probe Till August 14

The Supreme Court on Wednesday extended the time for the Securities and Exchange Board of India’s (SEBI) investigation into Adani-Hindenburg matter till August 14, 2023.

A bench of Chief Justice of India DY Chandrachud, Justice PS Narasimha, and Justice JB Pardiwala passed the order in an application filed by the SEBI seeking for an additional six months to conclude the investigation. The two-month period originally granted by the Supreme Court in its March 2 order expired on May 2.

The bench also asked the Court’s expert committee to continue assisting the Court and ordered those copies of the report submitted by the expert committee, led by former Supreme Court judge Justice AM Sapre, be shared with the parties of the case and their counsels.

The bench also ordered the SEBI to submit a status report on the investigation’s progress. Tushar Mehta, Solicitor General of India, appeared for SEBI and seeking a 6-month extension. The bench, however, declined, stating that it could not give an “indefinite extension.”

“We granted two months and have now extended it until August, making it five months. If you have a genuine problem, please inform us then,” CJI Chandrachud told the SG.

SEBI filed a rejoinder affidavit in the Supreme Court two days earlier, outlining new reasons for requesting more time to investigate the Adani-Hindenburg matter.

According to SEBI, the transactions are complex and will take additional time to investigate. The securities board has also disputed the petitioner’s claim that it has been examining Adani since 2016. According to reports, the inquiry focused on the issuing of Global Depository Receipts by 51 Indian listed firms, none of which were part of the Adani Group.

SEBI has informed the Supreme Court bench that it has already contacted eleven abroad regulators in accordance with the Multilateral Memorandum of Understanding (MMOU) with the International Organisation of Securities Commissions (IOSCO) regarding its inquiry into Minimum Public Shareholding (MPS) standards.

During today’s session, Advocate Prashant Bhushan, representing the petitioner requesting an investigation into the Hindenburg report, questioned the SEBI’s claim that it has not been examining Adani group entities since 2016.

Bhushan stated that SEBI’s allegation contradicts the Union Government’s response to Parliament. Bhushan had questioned the SEBI’s need for further time on the last date of hearing, stating that the regulator has been probing Adani entities since 2016. Another petitioner in the case, Vishal Tiwari, also challenged the SEBI’s plea.

The Solicitor General said that the SEBI probe in 2016 had nothing to do with the charges in the Hindenburg report.

“In 2016, SEBI passed an order affecting 51 Indian listed companies. This group’s companies were not among those 51. My knowledgeable friend wishes to inquire about anything that has occurred with this company since 2016 or perhaps 2008. This petition does not have such authority. This petition is about the Hindenburg report,” SG stated. He promised to file an affidavit clarifying his stance.

“We are on the Hindenburg report, and the purpose of the proceeding is not to conduct roving investigations against the company. It is stated that the 2016 investigation is related to Global Depository Receipts and the 2020 investigation is related to Minimum Public Shareholding norms…,” CJI Chandrachud told Bhushan.