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Adani-Hindenburg Row: SC forms expert committee, orders SEBI to submit investigation report in two months

Pankaj Prasad
Adani Hindenburg Row
Adani Hindenburg Row

The Supreme Court also directed SEBI to investigate whether Section 19 of the SEBI Rules has been violated?

The Supreme Court has constituted an expert committee on the issue related to the Adani Group and the Hindenburg Report. The Supreme Court has constituted a six-member committee headed by former apex court judge Justice AM Sapre to deal with the issue related to regulatory mechanism for the protection of investors. The court gave this verdict during the hearing of petitions related to the Hindenburg Report on the formation of a committee related to the regulatory mechanism for the protection of investors.

Whether Section 19 of SEBI Rules has been violated? Have there been manipulations in stock prices? The Supreme Court directed SEBI to conduct an inquiry within 2 months and submit a status report. The Supreme Court has asked the committee to submit its report to the court in a sealed cover within two months. The Supreme Court said that the mandate of the committee would be to suggest measures to strengthen the framework, investigate the Adani dispute and suggest measures to strengthen the legal framework. SC directs SEBI to ensure that all information is made available to the committee. Adani dispute will have to be probed and measures to be taken to strengthen the legal framework have to be suggested. SC directs SEBI to ensure that all information is made available to the committee. 

A bench of Justice PS Narasimha and Justice JB Pardiwala had reserved judgment in the matter on February 17. The bench refused to accept the suggestions made by the Center in a sealed cover containing the names of the experts. The bench argued that it wanted to ensure transparency to protect investors.

Gautam Adani welcomed the court's decision 

The group has said that it will finalize the matter in a time-bound manner. The Supreme Court, while constituting an expert committee, has directed SEBI to investigate whether there has been any violation of SEBI rules and manipulation of stock prices. After this, Adani Group chief Gautam Adani tweeted, "Truth will prevail."

Adani Group shares fall after Hindenburg Research report 

During the hearing in the Adani-Hindenburg case in the Supreme Court on February 17, the Solicitor General, appearing for SEBI, submitted suggestions to the judges on the names and powers of the committee members. The Solicitor General had said that we want the truth to come out in this matter but it should not affect the market. The court should take a decision on handing over the responsibility of monitoring to a former judge. On this, the CJI had said that if the names you have given are not given to the other party, then there will be no transparency. We want complete transparency in this matter, so we will form a committee from our side. If it is not given to the other party, it will not be transparent. We want complete transparency in this matter, so we will form a committee from our side. 

A report related to the Adani Group was published on 24 January. In this report, claims of unfairly raising the price of shares and financial irregularities were made in relation to Adani Group. However, the allegations leveled against him were rejected by the Adani group. After that the matter had reached the Supreme Court.

On February 10, the court had said – it is necessary to protect the interests of the investors.

There is a need to protect the interest of Indian investors from market volatility in the backdrop of fall in stocks. The court had asked the Center to consider setting up a panel of experts headed by a former judge to strengthen the regulatory mechanism. 

Tiwari, Congress leader Jaya Thakur and activist Mukesh Kumar have filed four PILs in the apex court. Stock markets declined after Hindenburg Research made several allegations against the Adani group, including fraudulent transactions and share-price manipulation. Congress leader Jaya Thakur and activist Mukesh Kumar have filed four PILs in the apex court. Stock markets declined after Hindenburg Research made several allegations against the Adani group, including fraudulent transactions and share-price manipulation. Congress leader Jaya Thakur and activist Mukesh Kumar have filed four PILs in the apex court. Stock markets declined after Hindenburg Research made several allegations against the Adani group, including fraudulent transactions and share-price manipulation.