Adani issue: SC directs SEBI to conduct investigation; constitutes expert committee

New Delhi: Supreme Court on Thursday directed the Securities and Exchange Board of India (SEBI) to investigate the allegations in the Hindenburg Research report against the Adani group of companies within a period of two months.

The bench noted the stand of the SEBI is already investigating the allegations of the Hindenburg report as well as the market activity immediately preceding and post the publication of the report to identify violations.

The Court also constituted an expert committee to review the regulatory mechanism in the light of Adani-Hindenburg issue.

A bench comprising CJI DY Chandrachud, Justice PS Narasimha, and Justice JB Pardiwala appointed the following persons as the members of the committee: Mr OP Bhat, retired Justice JP Devdatt, Mr Nandan Nilakeni, Mr KV Kamath, Mr Somasekharan Sundaresanas the members of the committee. The Committee will be under the head of former Supreme Court judge Justice AM Sapre.

The committee shall submit its report in a sealed cover before this court within 2 months.

Adani Group stocks have taken a beating on the bourses after Hindenburg Research made a litany of allegations, including fraudulent transactions and share-price manipulation, against the business conglomerate. The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.