NEW DELHI: Almost two months after the Supreme Court directed SEBI to probe allegations of stock price manipulation by the Adani Group and possible lapses in regulatory disclosures, the Indian market regulator has moved the top court seeking a six-month extension to complete the probe.
In an application filed before the expiry of the two-month period on May 2, SEBI submitted that to ascertain possible violations related to “misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions”, it would take six more months to complete the exercise. SEBI urged the top court to pass an order extending the time to conclude the investigation by a period of six months.The top court is expected to take it up the matter Monday.
In its March 2 order, a three-judge Bench led by CJI DY Chandrachud had said, “SEBI shall expeditiously conclude the investigation within two months and file a status report.” It had set up a six-member expert committee headed by former Supreme Court judge AM Sapre to investigate if there had been regulatory failure in dealing with alleged contravention of laws pertaining to the securities market in relation to the Adani Group or other companies in the wake of the Hindenburg Research report.
Other members on the panel were former SBI Chairman OP Bhatt, former Bombay HC Judge JP Devadhar, Infosys co-founder Nandan Nilekani, former chief of the New Development Bank, BRICS KV Kamath and advocate Somasekhar Sunderasan, who was recently recommended for appointment as Bombay High Court judge. The Bench had asked the committee to submit its report in a sealed cover in two months.
The Adani Group stocks have tanked on the bourses after Hindenburg Research made a litany of allegations, including fraudulent transactions and share price manipulation, against the business conglomerate led by Gautam Adani. The Group has dismissed the charges as lies, saying it has been complying with all laws and disclosure requirements.
Justice Sapre panel was also asked to look into the protection of Indian investors after a damning report by a United States’ short seller wiped out more than USD 140 billion of the conglomerate’s market value. “Further, SEBI shall apprise the expert committee of the steps it has taken in furtherance of its ongoing investigation.
The constitution of the expert committee does not divest SEBI of its powers or responsibilities in continuing with its investigation into the recent volatility in the securities market,” the CJI-led Bench had clarified.