A bench of CJI D Y Chandrachud, Justices P S Narasimha and J B Pardiwala said, “We are dealing right now with the fallout of Hindenburg report. The purpose of these proceedings is not… to conduct a roving inquiry. We will deal with whatever is directly related to the Hindenburg report, which the SG said the Sebi will be filing an affidavit.”
If SC wants, we can place on record all Adani probes: SG
The Supreme Court on Wednesday asked Sebi to submit by August 14 the status of probe into Hindenburg’s stock price manipulations allegations against Adani group companies.
When one of the PIL petitioners said that LIC had also invested huge amounts in Adani group companies and that the role of the public insurance company should be investigated, the CJI-led bench said, “Just because some PIL petitioners ask, should we order a probe against LIC? We have asked Sebi as the statutory regulator to appraise us of the position of investigation. Let us first understand the stage of investigation after it submits a report to us.”
Advocate Prashant Bhushan reflected the demands made on social media by Congress leader Jairam Ramesh linking the 2016 Sebi probe into Global Deposit Receipts issue and said the FPIs – Cresta Fund Ltd, Albula Fund Ltd and APMS Fund Ltd, whose accounts were frozen – were mentioned by Hindenburg as investors in Adani group companies.
“How did this escape Sebi scrutiny,” he asked and demanded that Sebi should be asked to file details of all three probes by SEBI – 2016 into GDR issue; 2020 into Minimum Public Shareholding norms violations and the 2023 Hindenburg report – before the SC. There is a widespread perception that the Adani group is being shielded from facing action for violations for the last seven eight years, he alleged.
SG Tushar Mehta said, “I want to clear the air. The 2016 probe is completely different. But if the court wants, we can place on record all the investigations that have been done against Adani group.”
He said social media discussion on MoS finance’s statement in Parliament is being discussed in court. “The minister was referring to the Sebi probe into MPS norm violations which commenced in October 2020” the SG said and read out a fresh affidavit, details of which were published in TOI on May 16.
Submit report on Adani-Hindenburg probe by August 14, SC tells SEBI