The Supreme Court on Wednesday granted a three-month extension to the Securities and Exchange Board of India (SEBI) to complete its investigation into allegations of ‘brazen’ stock price manipulation by the Adani Group.
The apex court has granted the market regulator time till August 14 to submit its final report. In the meantime, the bench ordered SEBI to file an updated status report of the investigation as well as make its report submitted to Justice A M Sapre committee available to related parties.
SEBI, the Indian securities regulator, had moved the SC last month demanding a six-month extension to probe the case. The regulator argued that the complexity of the case meant it would take 15 months to complete the investigation. According to SEBI, there are as many as eight possible violations that require more time to complete the probe.
“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 the present case,” read the plea filed by SEBI.
The had court earlier this week refused to provide a six-month extension, saying there needed to be ‘alacrity in work’ of the body.
“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.
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SC forms the committee
In March, the bench led by the Chief Justice of India ordered SEBI to investigate whether the conglomerate failed to disclose transactions with related parties to the regulator and if it manipulated the stock prices. It had granted a two-month deadline to complete the investigation at the time.
The conglomerate has been under the scanner ever since US short-seller Hindenburg Research raised questions about the group’s debt levels and use of tax havens.
In the brutal fallout of Hindenburg’s report on Adani, investors dumped the group’s shares while the company was forced to abandon a $2.5 billion share sale.
The group has denied the allegations and has rubbished subsequent exposé reports claiming it had tapered down its growth projections and that it had not repaid loans against promoter’s shares.
(With inputs from agencies)
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