Adani-Hindenburg Case: Supreme Court Upholds SEBI's Investigation, Grants Relief to Adani Group
Court's decision came as a significant relief for the Adani Group
Adani-Hindenburg Case Latest News: In a landmark decision, the Supreme Court of India has upheld the Securities and Exchange Board of India's (SEBI) investigation into the allegations made by Hindenburg Research against the Adani Group. A three-judge bench, comprising Chief Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Mishra, delivered the verdict, refusing to interfere with SEBI's ongoing probe.
The apex court, in its ruling, emphasized that the Adani Group cannot be subjected to a separate investigation solely based on the Hindenburg Report or similar allegations. The court maintained that SEBI will continue its inquiry in accordance with the established legal framework.
Relief for Adani Group
The court's decision came as a significant relief for the Adani Group, stating that the regulatory regime does not warrant its interference. It clarified that the Hindenburg Report cannot serve as the grounds for initiating a separate probe. Additionally, the court dismissed any claims that SEBI was negligent in taking appropriate action.
SEBI Directed to Complete Investigation
While acknowledging SEBI's progress in investigating 20 out of the 22 cases, the Supreme Court directed the regulatory body to conclude the remaining two cases within three months. The Chief Justice, DY Chandrachud, highlighted that there was no valid basis for directing SEBI to annul the amendments in the Foreign Portfolio Investors (FPI) and Listing Obligations and Disclosure Requirements (LODR) rules.
Market Reaction and Adani Group's Shares
The verdict had an immediate impact on the stock market, particularly on Adani Group shares. Anticipation of a favorable decision by the Supreme Court led to a surge in Adani Group stocks, with gains of up to 10%. Adani Energy Solutions emerged as the top gainer with a 10% increase, followed by Adani Total Gas with an 8% gain. NDTV shares also saw a notable increase of 7%.
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The Hindenburg Report had accused the Adani Group of manipulating share prices, prompting the Supreme Court to entrust SEBI with the investigation of 22 cases related to these allegations. The court's decision to uphold SEBI's probe underscores its confidence in the regulatory body's ability to conduct a thorough and impartial investigation.
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