'Factually Factually Baseless', SEBI to SC on Allegations of Probing Adani since 2016

IANS 15 May 2023

Market regulator the Securities and Exchange Board of India (SEBI) has told the Supreme Court (SC) that the allegations that it has been investigating the Adani Group since 2016 are "Factually Baseless". SEBI also cautioned that "any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable."

SEBI, in a rejoinder affidavit submitted in the apex court, said: "The allegation that SEBI is investigating Adani since 2016 is factually baseless..."

It further added, "The application for extension of time filed by SEBI is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice, and hence would be legally untenable."

SEBI said, "In the context of investigation into Minimum Public Shareholding (MPS) norms, Sebi has already approached eleven overseas Regulators under the Multilateral Memorandum of Understanding (MMOU) with the International Organisation of Securities Commissions (IOSCO). Various requests for information were made to these Regulators. The first request to overseas Regulators was made as early as on 6 October 2020."

On 12th May, the SC indicated that it may grant three months more to the SEBI to complete its probe into the controversy surrounding the Hindenburg Research report on the Adani group of companies.

A bench headed by chief justice of India (CJI) DY Chandrachud and comprising justices PS Narasimha and JB Pardiwala said it accepts petitioners' point that SEBI cannot take indefinitely long period to complete its probe and "we are not going to give them six months, we give them three months..." and added that it is not keen on accepting SEBI's request to grant six-month extension to complete the probe.

On 29th April, SEBI moved the Supreme Court seeking six-months extension to complete its probe into Hindenburg allegations of 'stock manipulation' by the Adani group.

The top court on Monday is likely to pronounce order on SEBI's plea.

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Comments

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jaishirali

1 year ago

Sadly, SEBI has been reduced to a government department playing safe all the time, not a regulator with powers and autonomy. Take its behaviour with an arrogant NSE, its blindness with respect to stock manipulation (Adani is only one case) and the almost regular failures to put forward cases that are not struck down by SAT. One wonders why the regulator with so much power seems oblivious to what is going on before its eyes, possibly salaries and pension matter the most to SEBI staff.

david.rasquinha

1 year ago

Even if we rule out 2016, SEBI by its own admission has been seeking information from 11 overseas registrars since October 2020. SO that is close to three years already and SEBI seems to have nothing to show for its mighty laboring. Now if we add six months it would go to well over three years! All this when Hindenburg and the Financial Times took a fraction of this time. Sad to see SEBI thus destroy whatever little credibility it had.