India’s Supreme Court forms panel to investigate Adani’s allegations

India’s Supreme Court has appointed an expert panel to investigate whether the country’s securities regulator failed to take action on allegations against Adani Group leveled by short-selling Hindenberg Research.

The country’s Supreme Court on Wednesday directed a six-member panel to investigate “regulatory failures in addressing alleged violations of laws relating to the securities market related to the Adani Group,” according to a court order. .

The Supreme Court has asked the panel to provide an “overall assessment of the circumstances,” including an assessment of the causes of recent market volatility. The court ordered the panel to submit its findings within two months.

tick strain lost more than $145 billion In a wipeout following the January release of the Hindenburg report, which accused Gautam Adani’s infrastructure group of stock manipulation and accounting fraud. Adani denied the accusations.

Political pressure is mounting on India’s Securities and Exchange Commission, with opposition politicians criticizing the regulator for not doing enough to protect retail investors. Adani is widely seen as close to Prime Minister Narendra Modi and has publicly aligned his business with the government’s growth plans.

Led by former Supreme Court Justice Abhay Manohar Sapre, the six-member panel included former National Bank of India chairman OP Bhatt, Infosys chairman Nandan Nilekani, veteran banker KV Kamath, lawyer Somasekhar Sundaresan, and former judge JP Devadhar. increase.

The Supreme Court has directed SEBI to extend its investigation to Adani to investigate possible illegal stock price manipulation.

The Supreme Court also asked Sebi to investigate alleged violations of rules related to related-party transactions with listed Adani Group companies and minimum stock market volatility. Last month, the global index provider MSCI changed the weight On certain shares of the Adani Group after reviewing the number of freely tradable shares.

The court asked SEBI to report its process to the court and to conclude its investigation within two months. However, the two-month period is not necessarily binding, as SEBI may request an extension.

Adani said he welcomes the Supreme Court’s order. “The Adani Group welcomes the Supreme Court order,” Adani tweeted on Thursday. “It brings finality in a time-bound way. Truth will prevail.”

Senior Supreme Court Attorney Sanjay Hegde warned that the Supreme Court committee’s results have been mixed.

“In the past, some committees have done an effective job and others have responded less than satisfactorily,” Hegde said.

“In the case of Adani, the committee is made up of prominent figures, but not many of them seem to have intimate knowledge of stock market manipulation,” Hegde added.

“This committee is not like FDR appointing Joseph Kennedy to the SEC to set things right after the Wall Street crash.” Kennedy, father of John F. served as chairman of India’s Supreme Court forms panel to investigate Adani’s allegations

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