Adani-Hindenburg Row: SC Refuses To Entertain Pleas Demanding SIT Probe; Directs SEBI To Complete Probe Within 3 Months

The Supreme Court on Wednesday refused to interfere with SEBI's probe into the Adani-Hindenburg row. "The power of this court to enter the regulatory framework of SEBI is limited. No valid grounds were raised to direct SEBI to revoke its amendments on FPI and LODR regulations. The regulations do not suffer from any infirmities," the top court said.

The Supreme Court has issued directives to the Central government and the Securities and Exchange Board of India (SEBI) to carefully evaluate the recommendations proposed by an expert committee to strengthen the regulatory framework. In a crucial decision, a bench comprising Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra rejected the plea for a Special Investigation Team (SIT) probe into the Adani-Hindenburg issue.

ALSO READ: Illegal Mining Case: ED Raids Multiple Locations Linked To Jharkhand CM Hemant Soren's Aides And Others

The apex court instructed SEBI to conclude its investigation into two pending cases out of the 24 related to the Adani-Hindenburg matter within the next three months. Highlighting confidence in SEBI's competence, the court dismissed the transfer of the investigation from SEBI to SIT, stating there is no grounds for such action.

SEBI has successfully completed investigations in 20 out of 22 matters related to the Adani-Hindenburg issue. The Chief Justice, quoted by LiveLaw, highlighted SEBI's assurance and directed the regulatory body to finalise investigations in the remaining two cases within the specified three-month timeframe.

Furthermore, the Supreme Court urged the Government of India and SEBI to assess whether there were any violations of the law based on the Hindenburg report on short selling. If any infractions are identified, the court mandates appropriate actions in accordance with the law.

ALSO READ: Delhi CM Arvind Kejriwal Skips ED's Summon In Excise Policy Case Again; Terms Notice 'Illegal'

The court's verdict supports SEBI's ongoing investigation into the allegations raised by Hindenburg Research. The rejection of reliance on a third-party report underscores the court's faith in SEBI's capability to handle the case effectively. The pleas claimed the allegations that the Adani Group, considered close to Modi has been involved in fraud as reported by the Hindenburg report.