The Supreme Court declined intervention in the Adani-Hindenburg case, supporting SEBI’s ongoing probe. Justices DY Chandrachud, JB Pardiwala, and Manoj Misra stated there was no basis to shift the investigation from SEBI to an SIT.
The case involved allegations of stock price manipulation by the Adani Group. The bench addressed four petitions, delivering a verdict that emphasized the court’s limited authority within SEBI’s regulatory domain.
Highlighting the restrained role, the bench expressed, “The power of this court to enter the regulatory framework of SEBI is limited.” It dismissed calls to direct SEBI to revoke its amendments on FPI (Foreign Portfolio Investors) and LODR (Listing Obligations and Disclosure Requirements) regulations, asserting that these regulations were sound.
Providing insight into the investigation progress, the Supreme court revealed, “SEBI has completed investigation in 20 out of 22 matters.” Acknowledging the Solicitor General’s assurances, the bench directed SEBI to conclude the investigation in the remaining two cases within three months.
The judgment resulted from Public Interest Litigations (PILs) filed by lawyers Vishal Tiwari, ML Sharma, Congress leader Jaya Thakur, and Anamika Jaiswal. These PILs alleged that the Adani Group, perceived as close to the Modi government, artificially inflated share prices. Following a report by short seller Hindenburg Research, the share values of various group entities purportedly plummeted.
The bench reserved judgment on these PILs on November 24 of the preceding year. Throughout the proceedings, the court considered and weighed the intricacies of the allegations against the Adani Group and the regulatory actions undertaken by SEBI.
This verdict reinforces SEBI’s jurisdiction in the matter, maintaining the regulatory body’s autonomy in investigating potential market irregularities and addressing concerns raised by various stakeholders.
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