For violating the court-mandated timeline to complete the probe in the Adani Group-Hindenburg Research matter, an application has been filed before the Supreme Court seeking to initiate contempt proceedings against the Securities and Exchange Board of India.
The plea states that the market regulator was supposed to furnish its report to the top court by Aug 14., but it has failed to do so.
The plea also seeks an explanation from SEBI for not complying with the court-mandated timeline.
A direction must be issued to the regulator for submitting the report without any further delays, the plea says.
The Story So Far
After Hindenburg Research's report and Adani Group's counter in January, four public interest petitions were filed before the apex court. The PILs had broadly asked for directions regarding allegations against the Adani Group.
On March 2, the Supreme Court directed SEBI to look into any disclosure breaches and possible price manipulation of Adani stock in violation of existing laws.
The regulator was directed to submit its report within two months, but in April, SEBI made submissions before the apex court asking for six months to conclude its investigation.
The court, however, had granted time only till Aug. 14.
Since the markets regulator required more time to complete the investigation, it filed an application before the court on Aug. 14 asking for 15 additional days.
As per SEBI's last status report which was submitted to the court on Aug 25, the regulator had wrapped up its investigation in 22 of the 24 matters.
The Supreme Court had also set up an independent committee headed by Justice (retired) Abhay Manohar Sapre. Other members of the committee included OP Bhat, KV Kamath, Nandan Nilekani, Somashekhar Sundaresan, and retired Justice JP Devadhar.
The committee had submitted its report before the top court in May, wherein it stated that a conclusion with regards to a regulatory failure by SEBI could not be ascertained at the time.
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