Supreme Court Upholds SEBI Probe In Adani-Hindenburg Case; Rejects Transfer To SIT

The Supreme Court on Wednesday delivered its verdict on the Adani-Hindenburg case. The apex court held that there was ‘no ground to transfer the investigation from the Securities and Exchange Board of India to SIT (Special Investigation Team)’.

The apex court announced its ruling, stating that no valid grounds were presented to challenge the amendment to the Foreign Portfolio Investment (FPI) and Listing Obligations and Disclosure Requirements (LODR) recommendations.

Additionally, the court directed the Securities and Exchange Board of India (SEBI) to finalize the remaining two investigations within a three-month timeframe.

A bench consisting of Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra issued the verdict. The petitions contended that the Adani Group, perceived to have close ties with the Modi government, inflated its share prices. Following the report from the short seller Hindenburg Research, the stock value of multiple group entities experienced a significant decline.

About the Adani-Hindenburg Controversy

The Adani-Hindenburg controversy emerged in January 2023 when Hindenburg Research published a report accusing the Adani Group of accounting fraud, stock price manipulation, and improper use of tax havens. This report triggered a significant stock market decline, wiping out nearly $150 billion in market value at its lowest point.

The Supreme Court of India had reserved judgment on a series of Public Interest Litigations (PILs) seeking a court-monitored investigation into these allegations. The court clarified that it cannot automatically accept Hindenburg’s claims as the “ipso facto true state of affairs” and directed the Securities and Exchange Board of India (Sebi) to conduct an inquiry. The court mandated Sebi to conclude its investigation into all 24 cases and take appropriate legal action based on the recommendations of an expert committee.

Adani Group Companies shares

The shares of Adani Group companies on Wednesday saw a significant surge ahead of the Supreme Court verdict of the Adani Hindenburg controversy.

The shares of Adani Enterprises, surged 7.24 percent, reaching Rs 3,144.80 each around 10 am. Similarly, Adani Ports and Special Economic Zone shares registered an uptick of 5.62 percent, trading at Rs 1,139 per share, positioning them as the top gainers on the Nifty50 index.

The shares of Adani Transmission jumped 15.77 percent, reaching Rs 1,230, nearing their 52-week high. Meanwhile, Adani Total Gas shares also climbed by 10 percent to Rs 1,100.95, and Adani Green Energy shares witnessed an 8.23 percent increase, trading at Rs 1,735.60. Adani Power shares recorded a percent increase, reaching Rs 544.50 per share, while Adani Wilmar gained 7.31 percent, trading at Rs 393.40.

Additionally, other companies under the Adani conglomerate, including NDTV, ACC, and Ambuja Cement, experienced positive movements, with NDTV rising by 10.21 percent to Rs 300, ACC shares showing a 2.64 percent increase, and Ambuja Cement gaining 3.13 percent.

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