New Delhi: Markets regulator Sebi on Wednesday got three months from the Supreme Court to complete its probe into allegations of stock price manipulation against Adani group companies in a Hindenburg Research report.
Rejecting his request for six-month extension, a bench headed by Chief Justice DY Chandrachud said: “We had originally (as per the March 2 order) given you two months and now we will give you three more months.” are giving So effectively you’ve got five months.”
The bench, however, gave liberty to SEBI to approach the court in case it faces any difficulty in completing its probe.
The court’s order came on Sebi’s application seeking six more months to complete the probe.
In another direction, the bench asked the expert committee, headed by retired Supreme Court judge Justice AM Sapre, to continue its deliberations and consider the suggestions given by the experts to assist the court in considering its report. Also asked for The court is expected to hear the matter on this aspect in July when it reopens after the summer break.
The six-member expert panel was mandated to probe regulatory failure in dealing with alleged violations of laws relating to securities market in respect of Adani Group or other companies.
As directed, the expert committee submitted its report in a sealed cover. However, the court on Wednesday said the report should be made available to the parties and lawyers so that they can assist the court in further deliberations on the findings of the panel. It “requested the committee to take up any other aspect of its suggestions”.
As it extended the deadline, the bench refused to direct SEBI to file a status report to the court on its probe on the Global Depository Receipts (GDR) issue.
The denial was in response to advocate Prashant Bhushan’s contention that SEBI had probed the Adani group in 2016 as well, when it probed 51 companies for GDR violations. Bhushan based his claim on the government’s response in Parliament to a question on the GDR and the Adani group.
Solicitor General Tushar Mehta, appearing for SEBI, rejected Bhushan’s claim. “The refutation of this matter is the Hindenburg Report. The 2016 investigation was on a completely different issue, which had no relation with the allegation in the Hindenburg Report. None of the companies in this group were part of that investigation,” he told the apex court on Monday. Reiterating SEBI’s stand in an affidavit filed on .According to SEBI, the Hindenburg Report is on violation of minimum public shareholding norms.
The bench agreed with Mehta and told Bhushan that it cannot order an “ongoing probe against any company”. It then asked the solicitor to place on record an updated status report of its investigation by August 14.
(Edited by Tony Rae)
Read also: The Adani controversy brings back the story of how the Manmohan Singh government saved Satyam