Adani-Hindenburg Saga: SC Directs SEBI to Conclude Probes, Rejects CBI Transfer Plea

In a landmark judgment today, the Supreme Court of India rejected petitions seeking a CBI investigation into the allegations of market manipulation leveled against the Adani Group by short-seller Hindenburg Research.

Instead, the court directed the Securities and Exchange Board of India (SEBI) to complete its ongoing investigation into the matter within three months.

The verdict sent shockwaves through the Indian markets, with Adani Group stocks surging by as much as 20% on the Bombay Stock Exchange. The broader market also reacted positively, gaining 1.5% on the back of renewed optimism.

Gautam adani smiling in Adani Enterprises office

“This is a significant victory for the Adani Group and a reaffirmation of faith in the Indian regulatory framework,” said Gautam Adani, Chairman of the Adani Group, in a statement.

“We have always maintained our innocence and cooperated fully with all investigations. We are confident that the SEBI probe will clear our name.”

Hindenburg Research, however, expressed disappointment with the court’s decision. “While we respect the court’s judgment, we believe that a CBI investigation would have been more thorough and impartial,” said Nathan Anderson, founder of Hindenburg Research.

“Our report stands on its own merit, and we remain confident that the truth will eventually come out.”

The allegations against the Adani Group, first published in a damning Hindenburg Research report in January 2023, accused the conglomerate of accounting fraud, stock manipulation, and debt overleverage.

The report triggered a massive sell-off in Adani stocks, wiping billions of dollars off the company’s market value.

Adani group stocks plunges after hindenberg report in February 2023

The Adani Group vehemently denied the allegations and filed a defamation lawsuit against Hindenburg Research in the United States.

SEBI also launched its own investigation into the matter, and the Supreme Court’s ruling today clears the way for the regulator to complete its probe.

Key Takeaways:

  • Supreme Court rejects petitions for CBI probe into Adani-Hindenburg case.
  • SEBI directed to complete ongoing investigation within three months.
  • Adani Group stocks surge on positive market reaction.
  • Hindenburg Research expresses disappointment with the verdict.

What to Watch:

  • The progress of SEBI’s investigation and its findings.
  • The potential impact of the verdict on the Adani Group and the Indian markets.
  • Any further legal action taken by either side.

This judgment is likely to have significant ramifications for the Adani Group and the Indian financial sector. We will continue to monitor the developments closely and provide comprehensive coverage of this ongoing saga.

Also Read: Hindustan Unilever Hit with ₹447.5 Crore GST Demand

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