SEBI Denies Investigating Adani Group Since 2016, Calls Allegations 'Factually Baseless'

The SEBI also sought an extension of the deadline to complete the probe of the allegations on Adani Group in the Hindenburg report

On March 2, the Supreme Court had asked the SEBI to probe the crash of Adani Group stocks following the Hindenburg report.

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The Securities and Exchange Board of India (SEBI) told the Supreme Court (SC) on Monday that it had not investigated any firm of Adani Group since 2016 and the allegations that it has been doing so are "factually baseless", according to ANI. The market regulator also sought an extension of the deadline to complete the probe of the allegations on Adani Group in the Hindenburg report.

The SEBI has also filed a rejoinder affidavit in response to a petition relating to the Hindenburg report. It also said that any incorrect or premature conclusion of its probe into possible lapses of regulatory disclosures by Gautam Adani's group would not serve the interest of justice and would be legally untenable, news agency Reuters reported.

Securities and Exchange Board of India (SEBI) has apprised the Supreme Court that the allegation that SEBI is investigating Adani since 2016 is factually baseless.

SEBI has filed a rejoinder affidavit in response to a petition relating to the Hindenburg report. pic.twitter.com/41F9MbcCJG

— ANI (@ANI) May 15, 2023

The SEBI in a court filing said that it has already approached eleven overseas regulators for information to examine if Adani Group had violated any norms regarding its publicly available shares.

Last week, the Supreme Court said that it may grant a three-month extension to probe into the allegations of stock price manipulation by Adani Group and lapses in regulations. The SEBI had asked the court for a six-month extension.

A bench of chief justices DY Chandrachud and Justices PS Narasimha and JB Pardiwala said the court registry had received the report of the apex court-appointed AM Sapre committee on the issue and would like to hear the matter on Monday after perusing the findings of the panel. "We will go through the report in the meantime. We will take up the matter on May 15," the bench said.

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.

During the hearing, the bench told Solicitor General Tushar Mehta, appearing for SEBI, that it may grant the market regulator three months instead of six it has sought to wrap up the probe into allegations of stock manipulation.