Supreme Court adjourns hearing of SEBI’s plea on Adani investigation to Tuesday

The Supreme Court on Monday adjourned the hearing of Securities and Exchange Board of India’s (SEBI’s) plea seeking more time for the investigation of Adani group companies over Hindenburg Research’s allegations. Chief Justice DY Chandrachud, who led the bench comprising Justices PS Narsimha and JB Pardiwala, said that the hearing would now take place on Tuesday. 

The apex court was hearing SEBI’s plea seeking additional 6 months of time to complete its probe into the conglomerate. The court had listed the matter for Monday. The regulator said that it needs the additional time to ascertain possible violations related to "misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions".

SEBI told the apex court that any incorrect or premature conclusion of its investigations will be “legally untenable” and not “serve the ends of justice”. 

The regulator also said that it has approached 11 overseas regulators for information into Adani’s possible violations. It said that after the documents are received from various sources, they would be analysed before any conclusive findings can be arrived at. 

SEBI has asked for 6 months of time rather than the 2 months of time it was given on March 2. In its oral arguments, however, the Supreme Court said that it was willing to give an extension of 3 months, rather than 6 months. 

The markets regulator reiterated that Adani group’s transactions highlighted by Hindenburg research, are highly complex and included many sub-transactions across numerous jurisdictions. 

Hindenburg Research had, earlier this year, accused Adani group of indulging in stock manipulation, accounting fraud and other malpractices.