नवीनतम
SC-appointed committee gives clean chit to Adani
NEW DELHI [Maha Media]: Gautam Adani's Adani Group was given a clean chit Friday by a Supreme Court-appointed panel of experts that examined data from the national market regulator - the Securities Exchange Board of India, or SEBI - to investigate claims of financial fraud and stock price manipulation made by United States-based short-seller Hindenburg Research in January.
The six-member panel also said it found no evidence to indicate regulatory mechanisms' failure after the sharp rise of Adani Group stocks, and that the market is not 'unduly volatile'.
The panel - which called on SEBI to complete its own (independent) investigation as early as possible - said data provided by the regulator indicated 'no evident pattern of manipulation' in the prices of stocks of companies owned by Gujarat-based business tycoon Gautam Adani.
"At this stage, taking into account explanations provided by SEBI (and) supported by empirical data, prima facie it would not be possible for the committee to conclude there was a regulatory failure around the allegation of price manipulation," the panel said in its report.
"Volatility in Adani stocks was indeed high (but this) is attributable to the publication of the Hindenburg report and its consequences," the report - submitted early this month - added.
The meteoric rise in stock prices could not be attributed to 'any single entity or group of connected entities', the Supreme Court-appointed panel told the top court.
The panel was led by former Supreme Court judge Justice AM Sapre.
On March 2, Supreme Court set up an expert committee on the issue arising from the Hindenburg Research report on Adani Group companies. The committee was headed by former apex court judge Justice AM Sapre. The top court had then asked SEBI to file a status report within two months. SEBI had sought an extension to conclude the investigation in the report by US short-seller Hindenburg Research.
SEBI recently submitted before the Supreme Court that the application for extension of time filed by SEBI is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable. Upon hearing SEBI's fresh application, the top court on Wednesday granted an extension of time for three months to conduct the probe.
The January 24 Hindenburg report alleged stock manipulation and fraud, among other allegations, by the conglomerate. The Adani Group had then termed Hindenburg as "an unethical short seller", stating that the report by the New York-based entity was "nothing but a lie". A short-seller in the securities market books seeks to gain from the subsequent reduction in the prices of shares.
