In order to finish its investigation into Hindenburg claims of “brazen stock manipulation” and a “accounting fraud scheme” by the Adani group, SEBI has submitted a request to the Supreme Court asking for a six-month extension.
SEBI has filed an application in the Supreme Court seeking a six-month extension to complete its probe into Hindenburg allegations of “brazen stock manipulation” and an “accounting fraud scheme” by the Adani group #hindenburgreport #SupremeCourtofIndia pic.twitter.com/CzD4V25lpm
— Bar & Bench (@barandbench) April 29, 2023
In an application to the Supreme Court, the Securities and Exchange Board of India is requesting an additional six months to complete its investigation into the Adani Group-Hindenburg Research matter.
In its plea, SEBI noted that more time would be needed to reach confirmed conclusions and wrap up the inquiry.
The market regulator has stated that it typically takes at least 15 months to complete the investigation of these transactions in order to determine potential violations connected to financial misrepresentation and suspicious transactions that have been claimed in the Hindenburg report. However, SEBI asserted that it is making every effort to resolve the matter within six months.
SEBI has stated in the application that “as is the case in most investigations, every layer of information received often leads to further layers of information that are required, sought, obtained and analysed and this process is particularly time consuming where there is a complex web of transactions”.
It has been stated that the report’s alleged suspicious transactions are complicated and contain numerous sub-transactions, necessitating a thorough investigation that includes gathering data and information from a variety of sources, in-depth analysis, and confirmation of the companies’ submissions.
The investigation would also need getting bank statements from numerous local and international banks, which would take time and be difficult because the bank statements would also be for transactions that had been completed more than ten years earlier.
Prior to this, the Supreme Court had set a deadline of May 2 for the submission of the status report after ordering SEBI to “expeditiously conclude” the investigation within two months and release a status report on March 3. In the same order, the court established a six-person expert panel and mandated that it investigate the regulatory issues in the Adani case and submit a sealed report within two months.
According to SEBI, which was asked by the Supreme Court, the Adani group is believed to have misled stock prices and violated minimum public shareholding standards. According to the article, the Supreme Court also mandated that SEBI notify the expert committee of the activities it had taken.