Hindenburg Report on Adani: SC Asks SEBI to Circulate Response on Expert Committee’s Recommendations

The Supreme Court on Tuesday adjourned the hearing on the Adani-Hindenburg row and directed the Securities and Exchange Board of India (SEBI) to circulate its response on the recommendations provided by the court-appointed expert committee.

Solicitor General Tushar Mehta, representing SEBI, informed the court that they had submitted a constructive response to the expert committee’s suggestions.

A bench comprising CJI Chandrachud, Justice PS Narasimha and Justice Manoj Misra asked about the status of the investigation, to which Mehta stated that SEBI had been granted time until August 14 to complete the probe into the allegations of stock price manipulation by the Adani group, and the investigation is currently underway.

The bench sought SEBI’s response to be circulated along with the other case-related documents.

The court scheduled the matter for hearing immediately after concluding the proceedings on other pleas before a constitution bench, which is set to commence its hearing on Wednesday.

SEBI, in its application filed on Monday, clarified that its rule changes in 2019 do not hinder the identification of offshore fund beneficiaries, and appropriate action will be taken if any violations are found.

The expert committee, appointed by the Supreme Court, had previously stated in an interim report that it found no apparent pattern of manipulation in Gautam Adani’s companies and identified no regulatory failure. However, it highlighted amendments made by SEBI between 2014 and 2019 that restricted the regulator’s investigative capabilities, with the probe into alleged violations in money flows from offshore entities yielding no conclusive results.

The Adani Group’s stocks faced a decline after Hindenburg Research made a series of allegations against the conglomerate, including fraudulent transactions and share-price manipulation. The Adani Group refuted the charges, asserting its compliance with all legal requirements and disclosure obligations.