Adani Hindenburg Case: In response to numerous petitions seeking an investigation into claims of accounting fraud and stock manipulation against Adani group companies, which were reported in a January 2023 research report by US short-seller Hindenburg Research, the Supreme Court rendered its decision today.
Chief Justice DY Chandrachud Announces Verdict After Argument Conclusion
Following the conclusion of the arguments, Chief Justice DY Chandrachud delivered the decision in the case that had been reserved on November 24. The Supreme Court ruled that it cannot delve into the regulatory regime's purview and that the Hindenburg report "or anything like that" cannot serve as the foundation for an independent investigation. Additionally, it gave the Securities and Exchange Board of India (Sebi) the go-ahead to carry out the remainder of its legal investigation.
Sebi Given Three-Month Deadline for Adani Group Inquiry
The nation's markets regulator, Sebi, has also been mandated by the Supreme Court to conclude its inquiry into the Adani group in a span of three months. The Supreme Court has directed the Union government and Sebi to investigate whether the Hindenburg report on short selling violates any laws, and if so, to what extent.
Warning Issued on Petitions Relying on Unreliable Sources
The Supreme Court issued a warning in the decision, stating that petitions that depend on unreliable sources of information and lack sufficient investigation may be detrimental to the body of precedent on public interest law.
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