Adani Group gets another big blow, SEBI issues notice to 6 companies, alleges violation of rules
Adani Hindenburg Case Update: Market regulator SEBI has sent show cause notice to 6 companies of the group including Adani Enterprises, the flagship company of Adani Group. These companies are accused of alleged violations of transaction and listing regulation rules.
Adani Ports and Special Economic Zone (SEZ), Adani Energy, Adani Power, Adani Wilmar and Adani Total Gas have given this information in their respective exchange filings. Adani Enterprises said it has received two show cause notices during the quarter ended March 31. These notices have been issued by the Securities Exchange Board of India after investigating the allegations made by Hindenburg Research.
SEBI is investigating this matter (Adani Hindenburg Case Update)
On January 24, 2023, Hindenburg Research had made allegations against Adani Group ranging from money laundering to share manipulation. The Supreme Court had formed a 6-member committee to investigate this matter. Apart from this, market regulator SEBI was also asked to investigate.
What has happened so far in the SEBI investigation?
On March 2, the Supreme Court had formed a committee in this matter and had also given SEBI two months time to investigate.
SEBI was to submit its report by May 2, but during the hearing, SEBI asked for 6 months time for investigation.
The bench extended it till August. That means SEBI got a total of 5 months to conduct its investigation and submit the report.
On August 14, SEBI had sought 15 more days from the Supreme Court to complete its investigation and submit the report.
On August 25, SEBI filed a status report in the Supreme Court. Told that 22 investigations have been completed and 2 are incomplete.
On 24 November 2023, the Supreme Court had reserved the decision. It was said that there is no need to accept Hindenburg’s report as correct.
On January 3, the Supreme Court had given SEBI three more months to investigate the remaining two cases. SEBI has completed investigation in 22 out of 24 cases.
