Adani-Hindenburg: SEBI seeks 15-day extension to submit status report on probe into Adani Group

The Securities and Exchange Board of India (SEBI) today sought a 15-day extension from the Supreme Court to furnish a status report on its probe into the allegations of stock manipulation made by Hindenburg Research against Adani Group..The regulator said that its probe has progressed substantially and that it is awaiting information from foreign agencies to aid its efforts..The Supreme Court had in May this year granted SEBI time till today (August 14) to provide a status report on its probe into the controversy surrounding the Hindenburg Research report on the Adani Group of companies.In an order passed on March 2, the Supreme Court had allowed SEBI to continue with its probe. The probe was initially set to be completed by May 2.SEBI, however, had sought more time, stating that there were highly complex issues involved in the case. When the matter was taken up in May, the Court expressed its inclination to grant only three more months to SEBI to complete its probe, as against the six-months' time that the regulator had sought. The Court ultimately confined to asking SEBI to file its status report by August 14. .The case concerns allegations of stock price manipulation by the Adani Group of companies, in the wake of a report released earlier this year by short-seller, Hindenburg Research.The Hindenburg Research report had accused Adani of fraudulent practices by inflating share prices. The report led to a fall in the share value of various Adani companies, reportedly to the tune of $100 billion.During an earlier hearing, the SEBI had told the Court through an affidavit that it has not been probing any companies of the Adani Group since 2016.The Supreme Court eventually ordered a probe by an expert committee headed by former judge, Justice AM Sapre. This was in addition to the SEBI's ongoing probe in this case.The expert committee subsequently submitted its report while the SEBI sought an extension of time..The SEBI's probe deals with:Whether there was any violation of Rule 19A (related to maintenance of minimum public shareholding) of Securities (Contract) Regulation Rules?Whether there has been a failure (by the Adani Group) to disclose transactions with related parties and other information that concerns related parties?Whether there was any manipulation of stock prices by the conglomerate?.Read more about the petitioners in the case, and their prayers, here..Fact Check: Has the expert committee appointed by the Supreme Court given a clean chit to Adani Group?