Adani-Hindenburg row: SC Grants Three Months Extension to SEBI, Report to be Submitted on August 14

NEW DELHI: The Supreme court on Wednesday approved the capital markets regulater request and provided more time to complete its probe in the Hindenburg case. The Securities and Exchange Board of India (SEBI) had asked for six more months, which the Supreme Court declined today, issuing an extension of only three months. The matter is posted for hearing on July 11 next.

“We are not giving you an indefinite extension. Let us know if there is any difficulty. We could have given you time till September 30, but tell us at what stage the investigation is. Give us an update about the status of the investigation,” Chief Justice Chandrachud said.

The SEBI is ordered to submit a status report of its investigation by August 14, after which the court will decide whether or not extra time was needed.

The three-judge bench of Chief Justice Of India DY Chandrachud, and Justices PS Narasimha and JB Pardiwala directed that the copies of the expert committee’s report should be given to the parties and the counsel to assist the court in further deliberations.

The bench also noted that the expert committee has submitted a report bearing in mind the timeline of two months. “In order to enable the court and counsel to analyse the report and reflect on the suggestions made by the expert committee, the proceeding shall be listed on July 11, 2023”, the bench said.

SEBI had on Monday, submitted an affidavit asserting that any premature conclusion without having all the facts on record would not serve the ends of justice. “Extension of time filed by SEBI is meant to ensure carriage of justice keeping in mind the interest of investors,” it said.

The market capital regulator on March 2nd was ordered to investigate whether there have been any disclosure failures and if there was any manipulation of Adani stock prices in contravention of existing laws. The regulator was directed to submit its report within two months but on April 29, SEBI made submissions before the apex court asking for six months to conclude its investigation.

The apex court had also constituted a committee that was instructed to provide an overall assessment of the situation, including the causal factors which had led to volatility in the securities market in the recent past.