The Supreme Court of India has denied a request to grant the Securities and Exchange Board of India (SEBI) six more months to complete its investigation into the Adani Group’s alleged violations of insider trading regulations. The ruling comes amidst a legal battle between the Adani Group and US-based investment research firm Hindenburg Research, which has accused the Indian conglomerate of over-invoicing, financial irregularities, and environmental violations.
The Supreme Court on Friday said it cannot grant six months extension sought by the Securities and Exchange Board of India (SEBI) to complete its probe into the allegations levelled by the Hindenburg Research against the Adani Group, Bar and Bench reported.
“We cannot grant 6 months now. There needs to be some alacrity in the work. Put together a team. We can list the case in August mid and have the report then.. 6 months cannot be given as a minimum time. SEBI cannot take an indefinitely long period and we will give them 3 months,” a bench of Chief Justice of India DY Chandrachud and Justices PS Narasimha and JB Pardiwala said while hearing an application by SEBI seeking an extension of six months to finish its probe.
It further said the court registry has received the report of the apex court-appointed Justice (retd) AM Sapre committee on the issue and would like to hear the matter on May 15 after perusing the findings of the panel. The top court said it will pronounce its order on SEBI’s plea for extension of time on May 15.
The court’s decision was in response to a petition filed by Congress party member Jaya Thakur, who had sought an investigation into the Adani Group’s alleged violations of insider trading regulations. However, the court also cautioned Thakur’s lawyer, stating that it had made no allegations of regulatory failure on the part of SEBI.
“Be careful when you make allegations. This may affect the sentiments in the stock market. It’s all your allegations and the panel has been formed to look into it,” the bench said further.