The hearing for the Adani-Hindenburg case, which involves the Securities and Exchange Board of India (Sebi), the organization in charge of regulating the capital markets, has been rescheduled by the Supreme Court.
According to reports in the media, the constitution bench chaired by the Chief Justice of India would continue to examine applications that challenge the repeal of Article 370.
According to the report, Sebi provided a status update on August 25 on its investigation into the allegations made against the diversified conglomerate Adani by short-seller Hindenburg Research in its
Finding the financial stakes of shareholders among the 12 Foreign Portfolio Investors (FPIs) among these entities presents a difficult part of the investigation, according to Sebi,
who noted that many of these entities are situated in offshore tax havens, the report stated.
According to PTI, Sebi told the top court that it was still seeking information from five offshore tax havens to determine who the real benefactors of the conglomerate’s foreign investors were.
The Indian Express reported that the Enforcement Directorate (ED) found that 12 companies made money via short selling Adani stock.
IE reported that two Indian businesses, one registered in New Delhi and the other in Mumbai, are among the short-sellers.
The proprietors of the Delhi-based company are also the subject of a SEBI order for allegedly misleading investors and manipulating the stock market, according to the article.
The US-based Hindenburg Research, which expressed concerns over governance, prompted the Sebi to launch a probe into the Gautam Adani-led organization.
The market value of the conglomerate’s businesses as a whole was decreased by more than $100 billion as a result of these worries.
According to a recent report by Reuters, the conglomerate involved in port and energy operations denied any wrongdoing in January. Due to a lack of clearance to speak with the media, the sources, who wished to remain anonymous, described the infractions as mostly “technical” in nature.
Once the investigation is over,
it is anticipated that these violations will only result in a monetary fine. According to sources cited by Reuters on Monday, SEBI does not expect to make the study publicly available until the regulatory body has announced its conclusions about the Adani inquiry.
On Friday morning, SEBI informed the Supreme Court that its inquiry into the Adani Group’s operations was almost over.
According to the sources, one significant finding was a failure to disclose certain related-party transactions.
“Deals with a related party” The regulatory body stated in its statement to the court that it had examined 13 instances of transactions involving related parties.
According to the sources, “the penalty could go up to a maximum of 10 million rupees ($121,000) for each violation by each entity.”
ought to be found and reported,” one of them stated. “If not done, it could present an inaccurate picture of the financials of the Indian listed company.”
Additionally, the investigation revealed that some Adani companies’ ownership of offshore funds did not follow the rules, according to them.
According to Indian law, a foreign investor may make a maximum 10% investment through the foreign portfolio investor route; any bigger investment is categorized as a foreign direct investment.
The second of the two sources told Reuters that “some offshore investors have accidentally exceeded this limit,” but they would not provide further information.
SEBI files its report and informs the SC that its investigation into the Adani-Hindenburg case is concluded.
The Securities and Exchange Board of India has finished looking into the businesses owned by the Adani Group. The explosive Hindenburg report prompted an inquiry, which was finished and recommended for action in some cases, the market regulator testified before the Supreme Court.
The regulatory body stated it will “take appropriate action based on the outcome of the investigations” even though the SEBI filing did not include its conclusions. SEBI is looking into 24 transactions involving the listed firms in the Adani group,
according to a Reuters story that cited the document. Of these, 22 of the conclusions were now of a final nature. In the court filing, SEBI’s actions during the investigation, particularly those involving related party transactions, were also described.
According to reports, SEBI looked at 13 Adani Group transactions for potential related-party transaction rules violations. The regulator added that 12 foreign portfolio investors who were listed as public shareholders of Adani Group entities were included in its examination into several offshore agreements.
However, some of these organizations are situated in nations that are tax havens.
According to the regulator, “establishing the economic interest shareholders of the 12 FPIs remains a challenge.”
According to SEBI, it has asked for information on this matter from five international nations.
According to a report released in January of this year, the Gautam Adani-led company engaged in massive corporate fraud and stock price manipulation.
The Adani Group vehemently denied any wrongdoing, but the accusations had set off a major sell-off that at one point erased more than $150 billion in market value from its listed companies. Following the broadside, the Supreme Court had mandated that Sebi produce a report detailing its investigation.
Sebi has been looking into possible violations of the laws governing related party transactions, minimum public ownership requirements, and stock price manipulation. It has also covered the decline in Adani Group stock prices as a result of Hindenburg’s report.