Edited by Deepali Verma
The beginning of the year 2023 saw Hindenburg release a report on the Adani Group alleging that it is involved in brazen stock manipulation and implemented fraud schemes over the course of decades. A month after the report, overall, Adani shares nosedived by 25% to nearly 82% from January 24 to February 24.
The apex court has started to roll out its verdict on January 3 in the Adani Hindenburg case where it has rejected the intervention of CBI in the case. The case is heard by the three-judge bench headed by Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra. The judges have stated that the power of the court to enter the regulatory framework of SEBI is limited.
The verdict of the top court is still ongoing but here are the key takeaways from SC judgement so far:
>Presently, the SEBI has completed probes in 22 out of 24 cases and are instructed by the Supreme Court to complete the remaining two in the coming three months
> The investigations that SEBI is engaging in should lead to a logical conclusion.
> The top court has remarked that reports released by any third parties cannot be treated as conclusive proof
> Any case of conflict of interest couldn’t be derived at.
> The Government of India along SEBI are supposed to consider the Expert Committee recommendations for strengthening the regulatory framework.
> The Supreme Court has directed SEBI to look into the probe whether there was short selling as indicated in the Hindenburg report. Court suspects that others may have caused infraction of Indian law and if so then suitable action should be undertaken.
The Supreme Court points out that SEBI will take the probe to a logical conclusion and facts do not warrant the transfer of the case from SEBI to CBI.
