Adani-Hindenburg case : Adani shares open in green ahead of verdict
The Supreme Court will today deliver its judgment on a bunch of petitions seeking an investigation into allegations of accounting fraud and stock manipulation against Adani group companies, published in a research report by US short-seller Hindenburg Research in January 2023.
According to the list of businesses published on the court website, Chief Justice DY Chandrachud will pronounce the verdict in the case that was reserved on November 24 after the conclusion of the arguments.
The bench, also comprising Justice JB Pardiwala and Justice Manoj Misra will also rule on the steps that the Securities and Exchange Board of India (Sebi) ought to take to protect investors by keeping extreme market volatility in check and the tightening of pertinent regulations.
Here’s more on the Adani-Hindenburg case:
Hindenburg’s report, which was published in January 2023, claimed “brazen accounting fraud” and “stock manipulation” by the Gautam Adani-led group.
Even though the conglomerate rejected the report as “unresearched” and “maliciously mischievous”, it triggered a massive rout of Adani group stocks, which lost over $140 billion in days and forced the cancellation of a ₹20,000 crore share sale.
In March, the Supreme Court set up a six-member panel, led by retired Supreme Court judge AM Sapre, to look into regulatory failure by Sebi and alleged breach of laws by the Adani group. However, in its report submitted two months later, the committee said the allegations of stock price manipulation or violation of MPS norms by Adani group companies cannot be proved “at this stage”.
At the same time, the panel raised certain red flags regarding the current Foreign Portfolio Investors (FPI) regulations.
In November, the top court observed that it would not be proper for the court to appoint an SIT to look into alleged violations of MPS norms by Adani group companies without there being evidence of lapses on the part of the Sebi, which is already investigating the matter.