Adani-Hindenburg Row: Supreme Court Extends Deadline Till August 14 For SEBI Probe

The apex court on Monday adjourned the hearing on the SEBI plea seeking a six-month extension to conclude the investigation in the Hindenburg Research's report

On last Friday's hearing, the SC hinted at giving a three-month extension to investigate into the allegations of stock price manipulation by Adani Group and lapses in regulations.

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The Supreme Court (SC) on Wednesday granted the SEBI three-month extension to complete the probe into Hindenburg report against Adani Group. The SC told the SEBI to submit an updated status report on probe into allegations of stock price manipulation by Gautam Adani-led group by August 14.

The apex court on Monday adjourned the hearing on the SEBI plea seeking a six-month extension to conclude the investigation in the Hindenburg Research's report. The SC reiterated that it cannot give an indefinite extension for completing the probe as it has already given five months.

On last Friday's hearing, the SC hinted at giving a three-month extension to investigate into the allegations of stock price manipulation by Adani Group and lapses in regulations. However, the SEBI had asked the court for a six-month extension.

A bench headed by Chief Justice D Y Chandrachud directed the regulator to file an updated status report of the investigation. The bench, also comprising Justices PS Narasimha and JB Pardiwala, also ordered that the report of the Justice A M Sapre committee, which was submitted to it, be made available to the parties to enable them to assist the court in the matter.

Solicitor General Tushar Mehta, appearing for the SEBI, told the bench the six-month period was "compressed" by the regulator taking a realistic view of the matter and urged it to re-consider the August deadline. "You tell us what you have done because we had already granted you two months. We have granted you now further extension of three months which makes it five months. So, effectively you are asking for six months. We have granted you already five months," the CJI said.

The apex court had on March 2 ordered the formation of a six-member committee to probe allegations of stock manipulation against Adani Group by US short-seller Hindenberg.

The Supreme Court listed the matter for further hearing on July 11.

On March 2, the SC had asked the Sebi to probe the crash of Adani Group stocks following the Hindenburg report. It also asked the regulatory body to suggest ways to strengthen the regulatory framework to protect the interest of the investors.

The apex court also set up a six-member expert committee to determine if there was any regulatory failure to deal with the issue. The committee was asked to submit the report in a sealed cover in two months. The chairman of Sebi was also ordered to provide all the relevant information to the committee.