The shares of Adani Group companies experienced a substantial spike, soaring up to 20 percent on November 28 after the Supreme Court concluded hearings last week on petitions seeking a probe into allegations of accounting fraud and stock manipulation.
The apex court, which reserved its verdict, clarified that it cannot order an investigation solely based on reports without affording the entities involved an opportunity to present their case. In response to allegations from the US short-seller Hindenburg, the court stated, “We don’t have to treat the Hindenburg report as being a statement of truth. There is no means of testing the veracity of the Hindenburg report, and hence asked Sebi to probe.”
The SC bench, comprising justices JB Pardiwala, Manoj Misra, and others, emphasized that expecting the statutory regulator Sebi to issue show-cause notices solely based on reports is not practical. The court also noted on November 24 that appointing a special investigation team (SIT) to probe alleged violations of minimum public shareholding norms by Adani group companies would be premature without evidence of lapses on Sebi’s part, as Sebi is already investigating the matter.
As of 11:50 am, Adani Gas shares were trading at a significant 19.99% increase at ₹644.30, Adani Power exhibited a surge of 13.18% at ₹449.55, and Adani Enterprises saw a notable rise of 10.44% at ₹2,457.70.
