The Securities and Exchange Board of India (SEBI) on Monday, August 14, filed an application in the Supreme Court of India, seeking 15 more days to conclude their investigations and submit the status report on the allegations raised by US-based short-seller firm Hindenburg Research against the Adani group of companies. The initial deadline set by the SC for SEBI to submit their report ended on Monday.
In January this year, Hindenburg had published a report accusing the Adani group of widespread manipulation and malpractices to inflate their stock prices. Responding to these allegations, the Adani group, in a 413-page response likened the damning allegations made by Hindenberg to a "calculated attack" on India, its institutions and growth story, saying the allegations were "nothing but a lie”.
As a furore erupted, the SEBI, India’s market regulator, said that they were increasing scrutiny of all deals done by billionaire Gautam Adani’s company over the past one year.
In its application to the SC on Monday, the SEBI informed that an interim report regarding the issue has been prepared based on the currently available materials and that they had sought information from foreign agencies and regulators as well regarding the allegations raised by the short-seller firm. The SEBI informed the court that after evaluating the information they got, they would decide on the further course of action.
The SC, in an order on March 2, had originally allowed a time period of two months for the regulators to complete their probe. However, on May 17, the SEBI filed an application seeking another six months to complete the task, but was granted time only till August 14.