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India: Court Directs Market Regulator To Submit Investigation Report On Adani Group Within 3 Months

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India’s top court, Supreme Court, on Wednesday, gave the Securities and Exchange Board of India (SEBI), the country’s market regulator, an extended deadline till August 14 to complete the investigation in the Adani group’s securities law and regulatory disclosures breach. 

The court has granted SEBI permission to continue its investigation for the next three months and submit a status report of its inquiry against the Adani group which suffers a massive downfall in its shares after Hindenburg Research, a US-based short-seller, criticized the group in January.

After the court’s order on March 2 asking the country’s market regulator to prepare a report by May 2, SEBI filed a petition on April 29 seeking an additional six months to complete its investigation. 

After the Hindenburg Research report, the Supreme Court of India directed SEBI to analyze the accusations made against the group and file a status report to the concerned panel designed by the court.

Hindenburg Research pointed out numerous administrative concerns associated with the Adani group that led to its suffering a loss of more than $100 billion in the companies’ market shares which are a part of the group set up by billionaire Gautam Adani.

While seeking an extension to complete its probe, the SEBI stated it required more time to disclose the complex transactions the conglomerate had listed, unlisted, and its offshore entities.

The companies that the group had listed were already undergoing inquiries concerning violation of public float norms since October 2020, the market regulator informed the Supreme Court of India. Every company listed must produce 25% of public float, according to the Indian securities law.

The Supreme Court has ordered the market regulator to submit its investigation regarding the breach of public float by the Adani group. In its previous filing to the Supreme Court of India, SEBI said it had put together preparatory views on the allegations on Adani as well as its administrative concerns inspected by the Hindenburg Research report in January without revealing its view.

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