Adani-Hindenburg dispute: SC to pronounce order on panel of experts IG News

The Supreme Court is scheduled to pronounce its order on Thursday on a batch of PILs on the fall in shares of Adani Group triggered by allegations of fraud by Hindenburg Research.

A bench of Chief Justice DY Chandrachud and Justices PS Narasimha and JB Pardiwala is likely to pronounce its verdict on the setting up of a panel of domain experts to strengthen the existing regulatory measures for stock markets.

The top court, while reserving its order, had on February 17 refused to accept the Centre’s suggestion in a sealed cover on the proposed panel of experts.

Noting that it wanted complete transparency to protect investors, the apex court had also ruled out the possibility of any sitting judge overseeing the functioning of the proposed panel.

Asserting that statutory bodies like market regulator Securities and Exchange Board of India (SEBI) are fully equipped and on the job, the central government had expressed apprehensions that any unintended message to investors that regulatory bodies in India should be constituted by a panel The need for monitoring may adversely affect the flow of money in the country.

The Center had told the bench that it wanted to give information about the name and mandate of the panel in a sealed cover.

Stock market regulator Sebi, in its note filed in the apex court, had indicated that it was not in favor of banning short-selling or sale of borrowed shares and said it would consider the action taken by a small short-seller against the Adani group. Investigating the allegations made. as well as its share price movements.

Lawyers ML Sharma, Vishal Tiwari, Congress leader Jaya Thakur and Mukesh Kumar, who claims to be a social worker, have so far filed four PILs in the apex court on the issue.

Tiwari, in his PIL, sought a direction to the Center to set up a committee under the supervision of a retired apex court judge to probe the Hindenburg Research report, which made several allegations against the business group led by industrialist Gautam Adani. went.

Another PIL, filed by advocate ML Sharma, sought prosecution of short-seller Nathan Anderson of US-based Hindenburg Research and his associates in India and the US for allegedly exploiting innocent investors and misappropriating the market. for an “artificial crash” of the Adani Group’s stock price. ,

In his petition, Congress leader Thakur has sought an inquiry under the supervision of a sitting judge of the apex court against Adani group companies in light of the allegations.

The fourth PIL has sought probe by multiple central government agencies under the supervision of a panel or a former apex court judge against the Adani group following allegations of cheating and manipulation of share prices.

“Direct appropriate audits (transactional and forensic audits), investigations and investigations by appropriate agencies such as Serious Frauds Investigation Office (SFIO); Registrar of Companies (ROC); Securities and Exchange Board of India (SEBI); ED (Enforcement Directorate)” on the money-laundering aspect; IT (Income Tax Department on aspects of offshore transactions and tax-havens involved and DRI (Department of Revenue Intelligence),” the fourth plea said.

Besides seeking a direction to the Center and its agencies to cooperate with the probe, the PIL has also sought a direction to appoint a retired judge of the apex court or a committee to probe and monitor the probe.

Shares of Adani Group have come under pressure on the stock market following several allegations by Hindenburg Research against the business group, including fraudulent transactions and share-price manipulation. The Adani Group has dismissed the allegations as false, adding that it complies with all laws and disclosure requirements.


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