'Can't Doubt SEBI Probe Based On Newspaper Reports': SC Top Quotes In Adani-Hindenburg Case

The Supreme Court made many observations over the points put up by the petitioners and rejected their request to transfer the probe to SIT.

Here's what SC said on Adani-Hindenburg verdict.

Source : Getty | Supreme Court Website

Adani Hindenburg Case Verdict: The Supreme Court on Wednesday backed an investigation done by the Securities and Exchange Board of India (SEBI) in connection with the Adani-Hindenburg case and said there was no ground to transfer the same to a Special Investigation Team (SIT), as sought a set of pleas. The court also noted that third-party reports like OCCRP's cannot be grounds to doubt the regulator's probe in the entire matter. Chief Justice of India (CJI) read the conclusions of the verdict of the bench comprising the CJI, and justices J B Pardiwala and Manoj Misra.

 

Here Are Top Quotes From Supreme Court's Verdict

1. The Govt of India and the Sebi to look into if there is any infraction of law by the Hindenburg report on short selling and if so,  take action in accordance with law.
2. The power of this court to enter the regulatory framework of SEBI is limited. No valid grounds raised to direct SEBI to revoke its amendments on FPI and LODR regulations. The regulations do not suffer from any infirmities.
3. SEBI has completed investigation in 20 out of 22 matters. Taking into account the assurance of Solicitor General, we direct the SEBI to complete the investigation in the other two cases within 3 months.
4. SEBI says FPI regulations did not prohibit opaque structure and could in fact locate the beneficial owners. mandatory upfront disclosures meant that opaque structure was omitted in 2019...we find merit in sebi arguments and do not find reason to interfere in delegatory legislative powers. The current regulations are not tainted with illegality.
5. The power to transfer investigation must be exercised in exceptional circumstances. Such powers cannot be exercised in the absence of cogent justifications.
6. This court cannot take over the role of the delegatory legislation of SEBI. This court has the power under article 32 and 142 to transfer the probe to CBI etc but such powers can only be used sparingly and this court will not ordinarily supplant this role.. and the petitioners must put forth strong evidence to show that the investigative agency acted in a biased manner.
7. Reliance on newspaper reports and third party organisations to question the statutory regulator does not inspire confidence. They can be treated as inputs but not conclusive evidence to doubt SEBI probe.
8. The reliance on OCCPR report is rejected and reliance on a third party organisation report without any verification cannot be relied upon as a proof.
9. Rejecting the arguments of petitioners regarding conflict of interest on the part of the members of the Expert Committee, the CJI said: The Govt of India and SEBI shall take into consideration the recommendations of the committee to strengthen interest of the Indian investors.
10. PIL as a tool was invented so that legitimate causes are brought to this court by ordinary citizens.. however plea with unsubstantiated reports should not be pursued and thus members of the bar must be conscious of this.