Adani-Hindenburg: Fresh SC plea seeks completion of Sebi probe to clear ‘atmosphere of doubt’

A petition was filed in the Supreme Court on Tuesday seeking direction for the Securities and Exchange Board of India (Sebi) to complete the pending investigations against the Adani Group, as recent allegations by Hindenburg Research against the chief of India’s capital market regulator have created an “atmosphere of doubt.”

The plea, filed by petitioner-in-person advocate Vishal Tiwari, reminded the Supreme Court that in its judgment on January 3, it had directed Sebi to conclude the 24 investigations into Hindenburg’s earlier report accusing the Adani Group of share price manipulations and violations of securities law “preferably” within three months.

Sebi had completed 22 of the 24 investigations at the time and was awaiting inputs from external agencies regarding the remaining two probes. In a statement on Sunday, Sebi announced that it had completed one of the two pending investigations and that the remaining one was nearing completion.

The appeal, assessed by FE, said that “it becomes incumbent upon Sebi to conclude the pending investigations and declare the conclusion of the investigations,” in the wake of current developments that have “created an atmosphere of doubt in the minds of the public and investors.”

“It is important in the public interest and for the interest of the Investors who lost their funds after the publication of the Hindenburg report in 2023 against Adani Group. The right to know about the investigations led by Sebi and its conclusions are essential for the benefit of investors,” the application said.

The plea argued that the Court’s decision to say that the probe should “preferably” be completed within this timeline does not mean that the top court did not set a deadline.

Since this “deadline” had elapsed, Tiwari, who was one of the petitioners in the earlier case in which the January 3 order was passed, had sought to file a fresh application before the Supreme Court.

The plea follows new allegations by Hindenburg Research that Sebi was unwilling to act on its initial report on the Adani Group because chairperson Madhabi Buch and her husband Dhaval Buch had a stake in offshore funds linked to the conglomerate.