The Securities and Exchange Board of India (SEBI) on May 15 filed a fresh affidavit in the Supreme Court in connection with the Adani-Hindenburg case. In the affidavit, SEBI has clarified against petitioners' allegation that the regulator has been probing Adani group since 2016.

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The markets regulator said it was conducting a probe into the issue of Global Depository Receipts (GDR) issued by 51 listed Indian companies and no listed Adani Group firm was a part of the companies under GDR investigation, and therefore allegations of petitioners are misplaced.

It added that it has already reached out to 11 overseas regulators in the context of a probe into Minimum Public Shareholding norms.

SEBI clarified that the “investigation” being referred to in the reply affidavit has no relation and/or connection to the issues referred to and/or arising out of the Hindenburg report.

“The allegation that Securities and Exchange Board of India (“SEBI”) is investigating Adani since 2016 is factually baseless. I, therefore, say and submit that reliance sought to be placed on the investigation pertaining to GDRs is wholly misplaced,” SEBI said.

According to SEBI, the first request to the regulator was made on October 6, 2020. It noted that a detailed note has been submitted to the expert committee on steps taken, information received, status of requests made with overseas regulators.

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It also said that 12 transactions referred to in the Hindenburg Report are highly complex, composed of sub transactions across multiple jurisdictions and that an analysis would have to be conducted before arriving at conclusive findings.

Meanwhile, the markets regulator has also reiterated its plea for six months’ extension to probe Adani to "ensure carriage of justice."

Earlier on May 12 (Friday), the Supreme Court had said it will consider granting three more months to SEBI to wrap up its probe into allegations of stock price manipulation by the Adani group while rejecting suggestions that it had blamed SEBI for regulatory failure.

The apex court said it was to ascertain whether there was a regulatory failure that it had appointed an expert committee whose report it has received.

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"There has to be some sense of responsibility… You must be conscious of the fact that whatever allegations you make, it affects the stability and volatility of the stock market," Justice Chandrachud said, reacting angrily to submissions made by a petitioner's lawyer about regulatory failure on part of SEBI.

The bench, also comprising Justices PS Narasimha and JB Pardiwala, however, decided not to give much leeway to SEBI, which sought six months to conclude the probe, saying it has to show some alacrity and complete it within three months.

The Court has adjourned the case to July 10.

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First Published:May 15, 2023 1:38 PM IST