Adani-Hindenburg Case: Supreme Court May Grant SEBI A Three Month Extension Of Probe

The Supreme Court may grant SEBI (Security and Exchange Board Of India) a three month extension to probe into allegations of stock price manipulation by the Adani Group and regulatory disclosure lapse. SEBI had sought a six-month extension into the same and the order will be pronounced by SC on 15th of May. 

The apex court had asked SEBI in March to probe these allegations on Adani Group within two months and had set up a panel to look at providing protection to Indian investors after the famous report by the US short-seller Hindenburg wiped out more than $140 billion of the Indian conglomerate’s market value, bringing him down from many top rankings. 

In an application moved before the court, SEBI had earlier submitted it needs six more months for ascertaining possible violations related to “misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions”.

“Pass an order extending the time to conclude the investigation as directed by this Court by the common order dated March 2 by a period of 6 months or such other period as this court may deem fit and necessary in the facts and circumstances of t he present case,” the SEBI plea said.

A bench of Chief Justice of India (CJI) DY Chandrachud and Justices PS Narasimha and JB Pardiwala said that it cannot grant six months extension as demanded by SEBI.

"We cannot grant 6 months now. There needs to be some alacrity in the work. Put together a team. We can list the case in August mid and have the report then.. 6 months cannot be given as a minimum time. SEBI cannot take indefinitely long period and we will give them 3 months," the Court said.

It then clarified that the order on SEBI's application for extension of time will be pronounced on May 15, Monday.