The Securities and Exchange Board of India (SEBI) has formally approached the Supreme Court, seeking an extension of an additional 15 days to conclude its ongoing investigation and subsequently present a status report regarding the Hindenburg report’s allegations against the Adani Group. The original deadline for SEBI to submit its report was scheduled for Monday.
Extension Granted to SEBI by Supreme Court for Adani-Hindenburg Investigation
In May of the current year, the apex court accorded an extension to the Securities and Exchange Board of India (SEBI) to facilitate the culmination of its ongoing investigation. This extension, granted until the 14th of August, was directed at enabling SEBI to conclude its inquiry into the matter involving the Adani Group and the Hindenburg report. It is noteworthy, however, that the duration of this extension was shorter than the six-month period originally sought by the regulatory body to fulfill its comprehensive investigative obligations.
Supreme Court Mandates SEBI to Furnish Detailed Report on Alleged Minimum Public Shareholding (MPS) Violations by Adani Companies
In conjunction with the extension granted to the Securities and Exchange Board of India (SEBI) for concluding its investigation into the Adani-Hindenburg case, the apex court has issued a directive stipulating that SEBI furnish a comprehensive report specifically addressing alleged breaches of the minimum public shareholding (MPS) norms by select Adani entities. The MPS norms, as prescribed by SEBI regulations, necessitate that publicly listed companies maintain a minimum public shareholding threshold of 25%.
SEBI Affidavit Reveals Outreach to Overseas Regulators in Adani Case
In a recent development, an affidavit submitted by the Securities and Exchange Board of India (SEBI) on Monday disclosed that it initiated contact with overseas regulatory bodies on 6 October 2020. This outreach was undertaken in the context of an investigation into the minimum public shareholding (MPS) of certain Adani companies. However, the affidavit refrained from disclosing the specific status or outcome of this particular investigation.
SEBI Commits to Providing Updated Status of MPS Norms Investigation
In response to recent developments, the Securities and Exchange Board of India (SEBI) has concurred with the initiative to present the most current status of its investigation concerning the Minimum Public Shareholding (MPS) norms case. It is noteworthy that SEBI clarified that a response provided by the junior finance minister to Parliament in July 2021, acknowledging that “SEBI is investigating some Adani group companies with regard to compliance with SEBI regulations,” specifically pertained to the MPS norms investigation and was unrelated to the Hindenburg report.
SEBI’s Clarification Before Chief Justice of India on Adani Group Investigation Controversy
The Securities and Exchange Board of India (SEBI) offered clarifications before a bench headed by Chief Justice of India, Dhananjaya Y. Chandrachud, in response to a recent controversy that emerged following the regulator’s Monday affidavit. This affidavit dismissed as “factually baseless” the assertion that SEBI had been investigating the Adani Group since 2016. In a subsequent brief affidavit submitted on Wednesday, SEBI expounded that the 2016 investigation pertained to the issuance of Global Depository Receipts (GDRs) by 51 Indian listed companies, and none of the listed companies affiliated with the Adani group were involved.