Share Market Live

NSE

The Securities and Exchange Board of India (SEBI) on Friday, August 25, submitted a crucial status report on its investigations into the allegations of stock price manipulation by the Adani Group to the Supreme Court.

This report sheds light on the progress of the extensive probe, which encompasses a total of 24 investigations related to various aspects of the Adani conglomerate's activities.

Out of these 24 investigations, a substantial 22 have already reached their conclusion, resulting in the issuance of final investigation reports. Additionally, one interim investigation report has been prepared as part of the ongoing scrutiny of Adani Group's operations.

However, the course of action regarding this interim report remains contingent on receiving vital information from overseas regulators. SEBI has indicated that it will finalise its actions once this crucial overseas data becomes available.

Notably absent from the report are any specific findings or details of the progress made in these extensive probes. SEBI's report primarily highlights its intent to take appropriate action based on the outcomes of these investigations, adhering to the provisions of the law.

The Supreme Court is scheduled to hear the Adani-Hindenburg case on August 29.

Here's a closer look at the outcome of the investigation by the SEBI

1. Violation of the Securities Contract Act:

Investigation Period: April 2016 to September 2020.

The investigation is currently at an interim stage. SEBI has meticulously summoned and examined a staggering 12,000 pages of documents. Notably, these investigations involve 12 Foreign Portfolio Investors (FPIs) and one foreign entity, with many of them registered in tax havens.

Also Read: GQG betting big on India, increases exposure beyond Adani Group stocks

Determining beneficial ownership in such cases has posed a formidable challenge, and SEBI is eagerly awaiting vital information from authorities in five different countries.

2. Failure to Disclose Related Party Transactions:

Investigation Period: April 2005 to March 2023.

The investigation regarding this matter has reached its conclusion. SEBI undertook a thorough examination of over 33,500 pages of documents and delved into 13 specific transactions involving entities related to the Adani Group.

3. Manipulation of Stock Prices:

Investigation Status: The investigation has been concluded.

SEBI conducted an exhaustive examination of a staggering 347 million trades across seven Adani Group companies. The analysis included an assessment of trades conducted by FPIs mentioned in the Hindenburg Report.

4. Possible Violations Of SAST Regulations:

Investigation Status: The investigation has been finalised, involving scrutiny of over 12,000 pages of documents.

5. Examination of Trades Pre and Post Hindenburg Report:

SEBI initiated an inquiry into whether any unusual trades were observed around the time of the release of the Hindenburg Report.

Notably, information from foreign jurisdictions is still awaited, and the report remains at an interim stage.

6. Insider Trading Violations:

SEBI conducted an in-depth investigation into potential insider trading activities related to Adani Power, Ambuja Cement, and Adani Green Energy.

Also Read: Adani takes bond brokers on Gujarat trip to instill confidence

This investigation has been concluded after examining a colossal 1.1 terabytes of data and scrutinizing 9,500 pages of documents.

New York-based short-selling specialist firm Hindenburg Research on January 24, 2023, published a report making several adverse observations regarding accounting practices, related-party transactions, concentrated shares ownership by a few overseas investment firms, and share price manipulation by the Adani Group of companies.

Subsequent to the release of the report, the share prices of the listed Adani Group companies have lost more than a third of their value. The Adani Group on January 29, 2023, gave a detailed response to the Hindenburg report, refuting the allegations and stating that most of the observations relate to matters that have been duly disclosed by the conglomerate in the past.

(Edited by : Shoma Bhattacharjee)

First Published:Aug 25, 2023 5:40 PM IST