New Delhi: Markets regulator SEBI has told the Supreme Court that allegations that it is probing the Adani Group since 2016 are “factually baseless”. SEBI also cautioned that “any wrong or premature conclusion of the matter without complete material material on record would serve the ends of justice and hence would be legally untenable”.
The Securities and Exchange Board of India (SEBI) said in a rejoinder affidavit submitted in the apex court: “The allegation that the Securities and Exchange Board of India is probing Adani since 2016 is factually baseless…”
It further said, “The application for extension of time filed by SEBI is meant to ensure justice keeping in mind the interest of the investors and securities market as without complete facts on record any wrongful or premature conclusion of the matter would be . would not serve the ends of justice, and would therefore be legally unsustainable.”
SEBI said, “In the context of examining the minimum public shareholding (MPS) norms, SEBI has already approached eleven foreign regulators under Multilateral Memorandum of Understanding (MMOU) with the International Organization of Securities Commissions (IOSCO). Various requests were made to these regulators. The first request to foreign regulators was made on October 6, 2020.”
On May 12, the Supreme Court indicated that it may grant SEBI three more months to complete its probe into the controversy surrounding the Hindenburg Research Report on Adani group companies. A bench headed by Chief Justice of India (CJI) DY Chandrachud and Justices PS Narasimha and JB Pardiwala said that it accepts the contention of the petitioners that SEBI cannot take an indefinitely long period to complete its investigation and “We are not going to give them six months.” We give them three months’ time…” and said it was not inclined to accept SEBI’s request for six months’ extension to complete the probe.
On 29 April, SEBI moved the Supreme Court seeking an extension of six months to complete the probe into the Hindenburg allegations of “stock manipulation” by the Adani group. The apex court is likely to pronounce its verdict on SEBI’s plea on Monday.