India

Supreme Court committee gives clean chit to Adani Group on Hindenburg allegations

A Supreme Court-appointed committee of experts examining the Hindenburg allegations has given a clean chit to the Adani Group and has said it appears there was no regulatory failure on the part of market regulator SEBI.

The experts’ committee said there was no price manipulation on the part of the Adani Group and that the conglomerate had taken necessary steps to comfort retail investors. The mitigating measures taken by the group had helped in building confidence in the stock and the stocks are stable now, the committee observed.

“At this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation,” the committee of domain experts said in the report submitted to the Supreme Court.

SEBI revealed that several entities took short positions prior to the publication of Hindenburg’s report and benefitted by squaring off their positions as the prices plummeted. This needs to be investigated, the report states.

According to the committee, the market has re-priced and re-assessed Adani stocks. “While they may not have returned to pre-January 24 levels, they are stable at the newly re-priced level,” the report stated.

According to empirical data, retail investors’ exposure to Adani equities grew after January 24, 2023. Based on this, it was found that the Indian stock market as a whole was not unusually volatile during the reference period, the report added.

Key findings of the Supreme Court Committee:

*Adani Group has disclosed all beneficial owners

*No charge by SEBI that they are rejecting Adani’s declaration of beneficial owners.

*Retail shareholding of Adani has gone up after Hindenburg report.

*No prima facie violation of existing rules or laws found.

*There were short selling profits made by some entities after the Hindenburg allegations which need to be investigated.

IN Bureau

Recent Posts

Indian Chamber of Commerce hosts 14th India Minerals and Metals Forum, focuses on green steel and circular economy

The Indian Chamber of Commerce (ICC) on Thursday hosted the 14th India Minerals and Metals…

18 minutes ago

PM Modi concludes visit to Ghana, heads to Trinidad & Tobago for 2nd leg of five-nation tour

Prime Minister Narendra Modi departed from Ghana's capital city of Accra after concluding the first…

29 minutes ago

India-Australia science and technology project set to boost undersea surveillance capabilities

India and Australia have undertaken the first science and technology project arrangement to improve the…

5 hours ago

India-France joint military Exercise Shakti-VIII concludes, marks completion of intensive training engagement

The eighth edition of India-France Joint Military Exercise Shakti-VIII concluded on Thursday at Camp Larzac,…

5 hours ago

Recognition of his steadfast efforts in strengthening voice of Global South: Jaishankar as PM Modi receives Ghana’s highest state honour

As Prime Minister Narendra Modi has been conferred the national honour of Ghana, Officer of…

8 hours ago

Jaishankar meets with FBI Director Kash Patel; appreciates India-US cooperation in countering terrorism, organised crime

External Affairs Minister S Jaishankar held a meeting with FBI Director Kash Patel in Washington…

9 hours ago