Adani Group Report: Petitioner Opposes Six-month Extension To Sebi

Advocate Vishal Tiwari, one of the petitioners in the Adani-Hindenburg case in the Supreme Court, has filed an application opposing the six-month extension sought by the Securities and Exchange Board of India (Sebi) to complete the probe into the allegations in the Hindenburg Research report.  

Sebi, which was set to file a status report in the matter on May 2, asked the top court to give it six more months to complete its probe into short-seller Hindenburg Research’s allegations against Adani. Tiwari’s application says Sebi is trying to make the probe “endless” and prayed that the court should not grant the regulator the extension.  

The Supreme Court, on March 2, formed an expert committee of five members headed by a former judge to investigate the regulatory failure, if any, that led to investors losing crores after the report by American short-seller Hindenburg Research against the Adani Group of companies was published.  

The committee was directed to submit its report in a sealed cover before this court within two months. The court had also said besides the ongoing investigation by Sebi into allegations in the Hindenburg Research Report against the Adani group of companies, the regulator shall also probe whether there has been a violation of Rule 19A of the Securities Contracts (Regulation) Rules 1957; whether there has been a failure to disclose transactions with related parties and other relevant information which concerns related parties to Sebi; and whether there was any manipulation of stock prices in contravention of existing laws.  

Sebi was also supposed to submit its report in two months and assist the expert panel formed by the court.  

The Hindenburg report on January 24 alleged that the Adani Group of companies manipulated its share prices, failed to disclose transactions with related parties and other relevant information concerning related parties, in contravention of the regulations framed by Sebi; and violated other provisions of securities laws.  

After the report, two separate petitions were filed by advocates M L Sharma and Vishal Tiwari. Sharma’s plea seeks the prosecution of Nathan Anderson of Hindenburg Research and his associates in India and the US for allegedly exploiting investors and the “artificial crashing” of the Adani group’s stocks.  

Meanwhile, Advocate Vishal Tiwari’s plea sought the court’s directions to set up a special committee to oversee a policy for sanctioning loans of more than Rs 500 crore given to big corporations.  

The third petitioner in the case was Congress leader Jaya Thakur. The plea seeks a probe against Life Insurance Corporation (LIC) and State Bank of India (SBI) for allegedly investing in the Adani Enterprises FPO (follow on public offer) at Rs 3,200 per share when the price was Rs 1,800 per share in the secondary market.  

The fourth petition was filed by one Anamika Jaiswal, represented by senior advocate Prashant Bhushan.