There has been a new development in the beleaguered Adani group and the Hindenburg case. This time the report of the Supreme Court panel on billionaire Gautam Adani’s group has been made public. On Friday, according to media reports, the top court said it was not possible at this stage to conclude that there was regulatory failure in the allegation of price manipulation.
A stunning report from a US short seller accused Gautam Adani’s port-to-energy empire of stock manipulation, among other fraud allegations.
The panel’s report revealed that empirical data suggests that investment by retail investors in Adani’s listed shares increased after January 24, which was the day Hindenburg released its research report on the Adani Group.
Also, the panel’s report noted that it was difficult to reach a conclusion of regulatory failure on the legislative side. But acknowledged that there is a need for an effective enforcement policy. Therefore, the Supreme Court advises that the enforcement policy should be in consonance with the legislative policy adopted by SEBI.
Further, in the Adani-Hindenburg case, the report pointed out that the chain of ownership of some 13 foreign entities is unclear. Further, the ultimate owner of the economic interest in the FPI could not be traced. And therefore, the suspicion of SEBI cannot be put to rest in the absence of ownership details of the FPI.
Not only this, the report also mentions that SEBI has observed that some entities had taken short positions prior to the Hindenburg report, and squared off their positions post the Nathan Anderson-backed short seller report to make profits.
But information is available on some 42 investors in the FPI category under PMLA rules.
After this news spread, the share price of Adani Enterprises traded at In 1920.70 there was an increase of 1.73%. Similarly, Adani Ports gained 1.8 percent. 675.70 each.
Meanwhile, Adani Power closed up 3.07 per cent. At 232, Adani Green Energy gained 2.4% 881.90 each, and FMCG player Adani Wilmar rose 2.6%. 388.05 each. Lastly, Adani Transmission gained 0.6% 755.65 each.
However, Adani Total Gas traded at a 52-week low 633.35 each. This is also the 5% lower circuit of the stock.
Earlier this week, LiveLodge reported that the Supreme Court has extended time till August 14, 2023, for the Securities and Exchange Board of India (SEBI) to file a complaint against the Adani Group against the allegations leveled by US-based short seller firm Hindenburg Research. to complete the investigation of the allegations. Regarding companies stock price manipulation.
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