Adani-Hindenberg: Adani Group’s problems may increase, hearing will be held in SC today, SEBI found mistakes in investigation
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Adani-Hindenberg Issue: Hearing is going to be held in the Supreme Court today in the Adani-Hindenburg case. On January 24 this year, American short-seller company Hindenburg Research made serious allegations ranging from money laundering to share manipulation on the Adani Group. After this, there was a huge decline in the shares of the company. Thereafter, the matter was investigated by SEBI (Securities and Exchange Board of India) is being done by SEBI presented its status report on 25 August. In the investigation, a case of disclosure by the listed companies of Adani group ie necessary disclosures and violation of rules in the matter of holdings of offshore funds has come to the fore. Today, after submitting the investigation report of SEBI, there will be a hearing in the Supreme Court.
Adani group suffered a loss of $100 billion.
After the Hindenburg report, the valuation of Adani Group’s stocks had decreased by $ 100 billion. However, after Hindenburg’s report, the Adani group rejected Hindenburg’s allegations outright. According to the report, SEBI said that the investigation of 22 out of 24 cases has been completed by it. In the two cases in which the interim report has been submitted, 13 foreign entities of the Adani group are being investigated. However, the report has not yet been made public by SEBI. However, market experts say that according to the present reports, the case of violation on behalf of Adani group is like technical in which monetary penalty can be imposed after completion of investigation.
On May 19, the committee made a report public
A committee was formed by the Supreme Court regarding the whole matter. The investigation report by the committee was made public on 19 May 2023. The committee had said that SEBI’s failure was behind the alleged manipulation in the price of Adani’s shares, this conclusion cannot be reached at this stage. The expert committee report said that SEBI suspects that 13 foreign funds investing in Adani Group may have links with the promoters. Also, no wash trade pattern has been found in the shares of Adani Group. To increase the volume of wash trade, the matter of buying and selling shares on its own has come to the fore. Some institutions had taken short positions prior to the publication of the Hindenburg Report. When the share price fell, he bought it and made a profit.
Investigation completed on the basis of facts
In the petition filed by SEBI in the Supreme Court, it has been said that in one case, SEBI has completed the investigation on the basis of the facts collected so far. As per extant procedures of the regulator, the interim report has been prepared and the same has been approved by the competent authority. SEBI said that in the investigation of four of the remaining six cases, the findings have been clarified and the report prepared as a result has been sent to the competent authority.
What is Hindenburg charge
Let us inform that on January 24, 2023, the American short seller Hindenburg Research released a report accusing the Adani group of driving away the shares of companies through rigging. After this, a huge decline was seen in the stocks of Adani Group and in the next one month, the stocks of Adani Group slipped down to 85 percent. Not only this, the Adani group had to withdraw after launching the mega FPO of Rs 20,000 crore Adani Enterprises.
The Supreme Court had given instructions till August 14
On July 11, a bench of Chief Justice of India (CJI) DY Chandrachud had asked Sebi to inform it about the status of the investigation into allegations of stock rigging against Adani Group. Along with this, instructions were given to complete the investigation expeditiously by the extended time i.e. 14th August. In January this year, American financial research and investment company Hindenburg accused the Adani group of fraud in the books of accounts and manipulation of stock prices, along with improper use of foreign units. After these allegations, there was a big fall in the shares of the group. After that, the Supreme Court had formed an expert committee on March 2 to investigate the disclosure of transactions between related parties and irregularities in the price of shares.
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