SEBI was responding to a plea that claimed it was probing the Adani group since 2016
New Delhi:
Markets regulator Sebi today told the Supreme Court that the allegation that it is probing the Adani group since 2016 is “factually baseless”. It also cautioned against “premature and erroneous conclusions” in the matter.
SEBI or the Securities and Exchange Board of India has said in an affidavit that it had examined global depository receipt issuances of 51 companies and none of the listed companies of the Adani group was among them.
Sebi was responding to a plea which claimed that Sebi was probing the Adani group since 2016 and opposed the six-month extension for the regulator’s probe.
SEBI told the Supreme Court, “The ‘investigation’ referred to in paragraph 5 of the reply affidavit has no relation and/or connection with the issues relating to and/or arising out of the Hindenburg Report.”
Sebi said, “The mentioned matter… pertains to issuance of GDRs by 51 Indian listed companies, in respect of which investigations were carried out. However, none of the listed companies of Adani Group were part of the above 51 companies.”
“After completion of investigation, appropriate enforcement action was taken in the matter. Therefore, the allegation that SEBI is probing Adani since 2016 is factually baseless.”
SEBI, while justifying its request for extension of six months, cautioned against “premature conclusion” of the matter.
“The application for extension of time filed by SEBI is meant to ensure justice keeping in view the interest of the investors and the securities market as to any erroneous or premature conclusion of the matter without any material work on record. will not serve the ends of justice and hence would be legally untenable,” the regulator said.
On March 2, the Supreme Court directed SEBI to investigate within two months any violations before and after the Hindenburg Report on the Adani group.
Responding to the petitions, the Supreme Court also appointed a panel of domain experts to look into India’s regulatory mechanism to protect investors. The panel submitted its report to the Registrar of the Supreme Court earlier this week.
On April 29, three days before Sebi’s deadline, the regulator asked for six more months. SEBI’s counsel said the matter pertained to cross-border jurisdiction, which would take time to process.
On Friday, the Supreme Court indicated it may agree to a three-month extension.