In a significant development regarding the ongoing Adani Group and Hindenburg case, the report of a Supreme Court panel has been made public. The panel’s findings, released on Friday, suggest that it is currently premature to conclude that there was a regulatory failure in relation to the allegations of price manipulation against billionaire Gautam Adani’s conglomerate.
Earlier this year, Hindenburg Research, a US-based short seller, published a comprehensive report accusing Adani’s port-to-energy empire of engaging in stock manipulation and other fraudulent activities. The report triggered widespread scrutiny and investigations into the matter.
According to the panel’s report, empirical data reveals that retail investors’ exposure to Adani listed stocks increased after January 24, which coincided with the release of Hindenburg’s research report on the Adani Group. However, the panel found it challenging to definitively establish a regulatory failure on the legislative side. Nevertheless, it acknowledged the need for an effective enforcement policy in order to ensure market integrity.
The Supreme Court, therefore, advises that any enforcement policy implemented should be in line with the legislative policies adopted by the Securities and Exchange Board of India (SEBI), the regulatory authority overseeing India’s securities markets.
Despite the panel’s report, the Adani Group continues to face challenges in the market. Adani Total Gas, one of the group’s companies, recently experienced a fresh 52-week low in its stock price, trading at ₹633.35 apiece, representing a 5% decline triggered by the ongoing controversy.
Earlier this week, it was reported that the Supreme Court extended the deadline for SEBI to complete its probe into the allegations made by Hindenburg Research. SEBI now has until August 14, 2023, to thoroughly investigate the accusations of stock price manipulation against the Adani group companies.
The release of the Supreme Court panel’s report provides some insights into the ongoing controversy surrounding the Adani Group and Hindenburg Research. As the investigations progress, market participants and observers will be closely monitoring the outcome, which could have significant implications for the reputation and operations of the Adani conglomerate.