New Delhi: In response to the problem raised by the Hindenburg Research study on the Adani Group companies, the Supreme Court established an expert committee.
Six people will make up the group, which will be led by former apex court judge Justice AM Sapre.SC has directed SEBI to investigate whether there has been a violation of Section 19 of SEBI rules or any manipulation of stock prices.
The apex court heard petitions about the Hindenburg report, including on the constitution of a committee relating to regulatory mechanisms to protect the investors’ interest.
While reserving its order on February 17, the top court refused to accept the sealed cover suggestion by the centre on the appointment of the committee related to regulatory mechanisms to protect the investors in the backdrop of the Adani-Hindenburg case and said that it wants to maintain full transparency.
CJI DY Chandrachud made it clear during the hearing that they would not accept the sealed cover suggestion by the centre because they want to maintain full transparency.
In a sealed cover note, Solicitor General Tushar Mehta, representing the centre, stated, “Two intentions should be kept in mind, one is that truth comes out and a holistic view is presented and the other one is there is an unintended impact on the markets.”
The share prices of companies in the Adani Group have dramatically decreased during the previous month. The January 24 Hindenburg report alleged stock manipulation and fraud by the conglomerate.
The Adani Group has criticised Hindenburg as “an unethical short seller” and stated that the report by the New York-based entity was “nothing but a lie”.
Adani Enterprises Limited, the group’s flagship company, cancelled a fully subscribed Rs 20,000 crore follow-on public offer due to the group’s stocks’ ongoing sell-offs.
On January 29, Adani Group, in a long 413-page report, said the recent report by Hindenburg Research was not an attack on any specific company but a “calculated attack” on India, its growth story, and ambitions.
“This is not merely an unwarranted attack on any specific company but a “calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” it said.
