The Supreme Court has formed an expert committee to look into the matter raised by the Hindenburg Research report on Adani Group companies. The committee will be composed of six members, led by former Supreme Court Justice AM Sapre. The Supreme Court has ordered SEBI to investigate whether there was a violation of Section 19 of the SEBI rules, as well as whether stock prices were manipulated.
The Supreme Court was hearing petitions related to the Hindenburg report, including the formation of a committee on regulatory mechanisms to protect investors’ interests.
On February 17, while reserving its order, the Supreme Court refused to accept the Centre’s sealed cover suggestion for the appointment of a committee related to regulatory mechanisms to protect investors in the context of the Adani-Hindenburg case, stating that it wants full transparency.
During the hearing, CJI DY Chandrachud stated that they will not accept the Centre’s suggestion of a sealed cover because they want full transparency.
Solicitor General Tushar Mehta, appearing for Centre, had submitted a sealed cover note and said, “Two intentions should be kept in mind, one is that truth comes out and a holistic view is presented and other one is there is an unintended impact on the markets.”
The share prices of Adani Group companies have fallen significantly in the last month. The conglomerate was accused of stock manipulation and fraud in the Hindenburg report on January 24.
The Adani Group has attacked Hindenburg as “an unethical short seller” and stated that the report by the New York-based entity was “nothing but a lie”.
The group’s stocks continued to fall in value, prompting its flagship company, Adani Enterprises Limited, to cancel a fully subscribed Rs 20,000 crore follow-on public offer.
In a lengthy 413-page report released on January 29, Adani Group stated that the recent Hindenburg Research report was a “calculated attack” on India, its growth story, and its ambitions.
“This is not merely an unwarranted attack on any specific company but a “calculated attack on India, the independence, integrity, and quality of Indian institutions, and the growth story and ambition of India,” it said.