Adani Hindenburg controversy: SEBI asks for 6 month probe extension
Adani-Hindenburg Update: The Securities and Exchange Board of India (SEBI) has requested more time to complete its investigation into the allegations made against the Adani Group by Hindenburg Research. The market regulator filed its request in the Supreme Court on Saturday, asking for a six-month extension to finish its investigation.
SEBI has submitted a detailed status report and prima facie findings to the Expert Committee. The possible violations that would require more time to finish the probe include related party transaction disclosures, corporate governance related matters, minimum public shareholding norms, share price manipulations, FPI regulations, ODI norms, insider trading regulations/FUTP regulations, and norms of short selling.
SEBI is investigating seven Adani companies and their subsidiaries and has requested them to provide documentation and information as part of the probe. These companies include Adani Enterprises Limited, Adani Power Limited, Adani Transmission
Limited, Adani Green Energy Limited, Adani Ports and Special Economic Zone Limited, Adani Total Gas Limited, and Adani Wilmar Limited.
SEBI has acknowledged that the complexity of the matter means that it would typically take at least 15 months to complete the investigation of these transactions. However, the regulator is making all reasonable efforts to conclude the matter within six months.
The Adani Group's stocks suffered a significant setback on the stock market following Hindenburg Research's report. The report made a variety of allegations, including fraudulent transactions and share price manipulation, against the business conglomerate led by industrialist Gautam Adani. Adani Group has refuted the allegations, calling them false and asserting its adherence to legal and disclosure mandates.
The Supreme Court had directed SEBI to submit its report on the Adani-Hindenburg case within two months on March 2. However, SEBI has
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requested a six-month extension to conclude its investigation into the Adani-Hindenburg matter.
The ongoing controversy surrounding the Adani Group and Hindenburg Research has caught the attention of many in India and abroad. The Adani Group is a major player in India's infrastructure, energy, and logistics sectors, and its actions are closely watched by investors and regulators alike.
The Adani Group has previously faced criticism and scrutiny over its environmental impact and alleged human rights violations. The conglomerate has been accused of displacing indigenous communities and destroying habitats, among other things.
The allegations made by Hindenburg Research have only added to the controversy surrounding the Adani Group. The report has raised concerns about the conglomerate's financial practices and transparency, prompting calls for greater scrutiny and regulation of the company.
Investors, regulators, and other stakeholders will be closely watching SEBI's investigation into the matter.
The outcome of the investigation could have significant implications for the Adani Group's future and the broader Indian economy.
The controversy surrounding the Adani Group and Hindenburg Research serves as a reminder of the importance of transparency and accountability in corporate governance. Companies must ensure that they comply with all relevant laws and regulations and provide accurate and timely information to investors and regulators.
SEBI's request for a six-month extension to complete its investigation into the Adani-Hindenburg row underscores the complexity and significance of the matter. The ongoing controversy has raised concerns about the Adani Group's financial practices and transparency and highlighted the need for greater scrutiny and regulation of the company. Investors, regulators, and other stakeholders will be closely watching the outcome of SEBI's investigation, which could have significant implications for the Adani Group's future and the broader Indian economy.