Adani-Hindenburg case: Supreme Court refutes SIT probe, SEBI asked to complete probe in 3 months

Adani-Hindenburg case: The Supreme Court has upheld investigation by the Securities and Exchanges Board of India (SEBI) into the petitions against Adani Group companies concerning allegations levelled by Hindenburg Research. The top court has directed SEBI to complete the remaining investigation on Adani Group expeditiously and preferably within three months.

CJI's observations and ruling

The CJI said the power of the Supreme Court to enter the regulatory framework of SEBI is limited. Supreme Court also said that there are no valid grounds to revoke SEBI's amendments to Foreign Portfolio Investors (FPI) and Listing Obligations and Disclosure Requirements (LODR) regulations. The regulations, according to the CJI, do not suffer from any infirmities, providing a vote of confidence in SEBI's regulatory measures.

SEBI's progress in investigation

SEBI has completed its investigation into 20 out of the 22 matters related to the Adani Group. The CJI, taking into account the assurance of the Solicitor General, directed SEBI to conclude the investigation in the remaining two cases within the next three months. This timeline reflects the court's commitment to expeditiously address pending matters.

Supreme Court rejects transfer of investigation to SIT

The Supreme Court unequivocally held that there are no grounds to transfer the investigation from SEBI to a Special Investigation Team (SIT). This decision reinforces the court's confidence in SEBI's capabilities and regulatory processes in handling the Adani-Hindenburg case.

OCCRP report discredited

The CJI discredited the report by the George Soros-backed Organised Crime and Corruption Reporting Project (OCCRP). The court emphasised that relying on a third-party organisation's report without proper verification cannot be considered as conclusive proof. This dismissal highlights the court's commitment to relying on verified and substantiated evidence in its proceedings.