Sebi Furnishes Investigation Update Over Adani-Hindenburg Issue

The Securities and Exchange Board of India (Sebi) has furnished an update regarding its inquiries into the Adani-Hindenburg issue through an affidavit submitted to the Supreme Court.

Out of the total of 24 investigations conducted, 22 have been successful, while 2 remain in interim stages. Presently, the board is in the process of awaiting responses from external agencies associated with the ongoing probes.

During the initial phase of the comprehensive investigation, a dedicated focus was directed towards examining 13 international entities affiliated with Adani’s business ventures. In conjunction with this, inquiries were also extended to five nations concerning the activities of Foreign Portfolio Investors (FPIs).

An interim report highlighted a noteworthy finding that categorized 13 overseas entities as public shareholders of companies within the Adani Group. Sebi has affirmed its commitment to taking appropriate actions in line with the results derived from this ongoing investigation.

The complexity of the situation arises from the fact that several of these entities are situated in offshore tax havens. Consequently, elucidating the economic interests of shareholders among the 12 Foreign Portfolio Investors (FPIs) poses a significant challenge for Sebi.

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Notably, on August 14, the market regulatory body sought an extension of 15 days from the Supreme Court to effectively conclude its investigation and subsequently present a comprehensive status report pertaining to its examination of the Hindenburg report related to the Adani group.

It’s important to highlight that the Supreme Court had initially set an August 14 deadline for Sebi to finalize its investigation and furnish a comprehensive report, with the subsequent hearing scheduled for August 29.

The central focus of Sebi’s extensive inquiry revolves around discerning whether the Adani Group potentially engaged in the manipulation of share prices by exploiting gaps in minimum public shareholding (MPS) regulations. Additionally, the investigation also delves into whether the group neglected to disclose transactions involving related parties.

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