SC Panel Says ‘No Fake Trading’ Found in Adani Stocks

NEW DELHI: According to the expert committee's report presented before the Supreme Court in the Adani-Hindenburg dispute, no evidence of fake trading patterns was discovered with respect to the stocks of the Adani group.

The panel further stated that the Securities and Exchange Board of India (SEBI) is in a "chicken and egg situation" because it has been unable to establish the ownership of 13 foreign businesses under investigation since 2020.

The panel also claimed that SEBI was in a "chicken and egg situation" because it has been unable to establish the ownership of 13 foreign businesses under investigation since 2020. Additionally, SEBI had "drawn a blank" on its investigation into the ownership of 13 foreign corporations, the Supreme Court was informed by the SEBI.

"Despite best efforts by the SEBI, they have not been able to crack who owns 13 foreign entities embroiled in the Adani allegations," the panel said.

The committee reported that the systems automatically generated 849 "suspicious" notifications related to Adani stock.

"These 849 alerts were considered by the stock exchanges and four reports were filed before SEBI -- two before the Hindenburg report and two after," the report said.

In order to discuss the Adani-Hindenburg controversy, the committee told the court that it made attempts to get in touch with a number of foreign security companies.

The committee informed the court that few of them claimed conflicts of interest because of their business ties to the Adani Group.

"Goldman Sachs suggested that the committee may profit from engaging with the Asia Securities Industry and Financial Markets Association, an industry body, which too disclaimed any expertise or ability to contribute to the committee," it stated.

The Adani-Hindenburg case investigation was given an extension by the Supreme Court on Wednesday until August 14. The court had previously given the investigation two months, but now it has granted a three-month extension, according to a bench led by Chief Justice of India (CJI) DY Chandrachud.

As part of its inquiry into potential regulatory disclosure violations by the Adani Group, SEBI warned the Supreme Court on Monday that any wrong or hasty conclusions could jeopardise the administration of justice.

The probe stems from a report written by US short-seller Hindenburg Research that revealed various governance issues with the Adani Group and charged it with fraud and stock manipulation.

Also Read: Assam's Education Department Flayed by Gauhati High Court

Also Watch: