Hindenburg's Charges Were Complex; Sebi Wants More Time To Probe Adani Issue

The Securities and Exchange Board of India (SEBI) has sought more time to complete its probe into alleged violations against Adani Group. The demand to extend the time limit by another six months was raised in the Supreme Court on Saturday. In the Adani matter, a Supreme Court bench headed by Chief Justice DY Chandrachud had on March 2 ordered SEBI to complete its investigation and submit a report within two months. The challenge is that these involve multiple sub-transactions. Normally, the investigation of such transactions takes at least 15 months. But Sebi said that it is making all possible efforts to close it within six months.

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SEBI also pointed to the 2020 Annual Report of the Enforcement Division of the Securities Exchange Commission, USA (SEC, USA). It has been pointed out that the SEC, USA generally takes about 34 months to complete similar investigations.

Apart from probing ’12 suspicious transactions’, Sebi said it has conducted a preliminary inquiry into related party transactions (RPT), disclosures, corporate governance matters and minimum public shareholding norms in foreign contexts.

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A detailed status report and prima facie findings have already been submitted to the six-member panel headed by former Supreme Court judge AM Sapre, constituted as per the court’s February 2 order, Sebi said. The matter is expected to be heard by the Supreme Court on May 8.

The Adani Group said in a statement that it welcomed the investigation, adding, ‘We are fully compliant with all laws, rules and regulations. Truth is sure to win. We are fully cooperating with SEBI. All support and cooperation will continue’. Adani Group informed.

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