Jairam Ramesh urges SEBI to logically conclude probe on Adani-Hindenburg row
May 01, 2023
New Delhi [India], May 1 : As SEBI sought a six-month extension to complete the probe related to Hindenburg Research's allegations against Adani Group, Congress leader Jairam Ramesh on Monday claimed that the financial markets regulator may have found irregularities worthy of investigation while urging it to logically look into each of the points.
"SEBI seems to have found many irregularities worthy of investigation in the Adani MegaScam, and we urge it to pursue each lead to its logical conclusion," the Congress leader tweeted.
He also claimed in the tweet that a long six-month extension risks the perception that the investigation is not being "vigorously and seriously pursued but is being buried".
Congress reiterated its demand for a JPC (joint parliamentary committee) to fully investigate Hindenburg's allegations in the conglomerate.
"...it also needs a speedy SEBI investigation to get to the bottom of the very serious allegations," the Jairam Ramesh's Twitter post read.
On Saturday, the Securities and Exchange Board of India (SEBI) urged the Supreme Court to extend the time to conclude the investigation of the Hindenburg Research report on the Adani Group by a period of six months.
In an application moved before the Supreme Court, SEBI submitted that it would take further time to arrive at verified findings and conclude the investigation.
Supreme Court on March 2 set up an expert committee on the issue arising from the Hindenburg Research report on Adani Group companies. The committee will consist of six members, headed by former apex court judge Justice AM Sapre.
The top court had then asked SEBI to file a status report within two months.
The Expert Committee is headed by Justice Abhay Manohar Sapre, a former judge of the Supreme Court of India along with other five members who include retired judge Justice J P Devadhar, OP Bhatt, KV Kamath, Nandan Nilekani and Somashekhar Sundaresan.
In addition to this, SC had directed SEBI to investigate whether there has been a violation of Section 19 of SEBI rules and whether there was any manipulation of stock prices.
The apex court was then hearing petitions pertaining to the Hindenburg report, including on the constitution of a committee relating to regulatory mechanisms to protect the investors' interest.
There was a loss of investors' wealth in the securities market after the Hindenburg report because of a steep decline in the share price of the Adani Group of companies.
The January 24 Hindenburg report alleged stock manipulation and fraud by the conglomerate.
The Adani Group has attacked Hindenburg as "an unethical short seller" and stated that the report by the New York-based entity was "nothing but a lie". A short seller in the securities market books gain from the subsequent reduction in the prices of shares.
