📷 Image Credits: The Times of India
The Supreme Court of India has upheld its January 3, 2024, verdict regarding the allegations of accounting fraud and stock manipulation against Adani Group companies by short-seller Hindenburg Research. The plea for a review of the judgment, which refused to order a separate probe into the matter, was rejected by the court. The three-judge bench, led by Chief Justice of India D.Y. Chandrachud, found no merit in the petition filed by Anamika Jaiswal, who was one of the writ petitioners in the case.
The review petition was dismissed on May 8, with the bench stating that there was no error apparent on the face of the record to warrant a review. The court emphasized that the Securities and Exchange Board of India’s (SEBI) investigation into the allegations was comprehensive and inspired confidence. The judgment supported SEBI’s probe and directed investigative agencies to take suitable action if any infractions of law were found.
In its January verdict, the Supreme Court had dismissed the reliance on the Hindenburg report and other unsubstantiated news reports as the basis for questioning SEBI’s investigation. The court highlighted that there was no material to show glaring inaction by SEBI or any regulatory failure by the market regulator. It also rejected pleas for the creation of a special investigation team to look into Hindenburg’s allegations.
The judgment acknowledged the impact of the Hindenburg report on the Adani Group stocks, which saw a significant decline following the publication of the report. Despite the volatility in Adani stocks, the court noted that it did not pose any systemic market-level risk. Moreover, the court directed SEBI to conclude the pending investigations within three months and ensure that the probe was not left open-ended.
Overall, the Supreme Court’s decision to uphold its verdict on the Adani-Hindenburg case reaffirms the confidence in SEBI’s investigative process and highlights the importance of thorough regulatory scrutiny in maintaining market integrity and investor confidence.
