Last Update: May 19, 2023, 20:51 IST
While the report is not the final word, it certainly comes as a relief to Adani’s empire. (File photo/News18)
Adani Group has denied all of Hindenburg’s allegations as false, saying it complies with all laws and disclosure requirements
In a relief to embattled billionaire Gautam Adani, a Supreme Court-appointed expert committee said it has found no evidence of share price manipulation in Adani group companies despite a Sebi probe into alleged violations in money flow from offshore entities. Separate investigation has returned “empty”. ,
However, the six-member panel said there was evidence of creation of short positions in Adani Group shares ahead of the report by US-based short seller Hindenburg Research, which alleged fraud, stock manipulation and money laundering in the apple-to-port group. Profits were made by closing positions following the fall in price following the publication of the damaging allegations.
Financial crime-fighting agency the Enforcement Directorate (ED) received intelligence about “potentially infringing and concerted selling by specified parties just prior to the publication of the Hindenburg Report, and may lead to credible allegations of concerted destabilization of Indian markets” , and SEBI needs to investigate such actions under securities laws,” it said citing ED’s response.
The committee, headed by former Supreme Court judge Justice AM Sapre, said in its 173-page report that based on data from stock market regulator Securities and Exchange Board of India (SEBI), it did not see “any clear pattern of irregularities”. The huge stock price rise in billionaire Gautam Adani’s companies can be attributed to “any one entity or a group of connected entities”.
The panel said in the report that it was not possible to conclude whether there were regulatory failures with regard to rigging of prices.
After the Hindenburg report sparked a political controversy and triggered a rout in the group’s shares, Adani was dethroned as the world’s third-richest person, with the Supreme Court setting up an expert committee to investigate on 2 March. constituted whether there was any failure to disclose transactions with related parties. And if stock prices were manipulated.
The committee was to work in parallel with the probe being conducted by SEBI into offshore entities investing in the Adani group. The regulator was first asked to complete the probe in two months and then given another three months till August 14.
All three were at the core of Hindenburg’s allegations against Adani.
While the report is not the final word, it certainly comes as a relief to Adani’s empire. All 10 Adani Group stocks gained after the report was made public, ending between 1.2 per cent and 7 per cent higher in late trade.
Flagship Adani Enterprises Ltd and Adani Ports and Special Economic Zone Ltd pared the day’s losses and jumped 3.5 per cent each.
The panel has said in its report that Sebi has “blanked” its probe into suspected violations in foreign investments in the Adani group and pursuing the matter further could be a “journey to no destination”.
The Adani Group has dismissed all the allegations as false, adding that it complies with all laws and disclosure requirements.
The Adani Group is working on a turnaround strategy that includes repaying some debt, buying back some bonds, infusing fresh investment by a private equity investor buying a stake of about US$2 billion, and raising Rs 21,000 crore by two . group companies.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI,
