The Securities and Exchange Board of India has moved the Supreme Court seeking a six-month extension to complete its probe into allegations of stock price manipulation by Adani Group and any lapses in regulatory disclosures.
The apex court had on March 2 asked SEBI to probe the matter within two months and also set up a panel to look into protection of Indian investors after a report by US-based short-seller Hindenburg Research wiped out more than $140 billion of the conglomerate's market value.
In an application moved before the court on Saturday, SEBI submitted that for ascertaining possible violations related to “misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions”, it would take six more months to complete the exercise.
"Pass an order extending the time to conclude the investigation as directed by this court by the common order dated March 2 by a period of 6 months or such other period as this court may deem fit and necessary in the facts and circumstances of the present case," the plea stated.
In a statement following SEBI's submission, the Adani Group said it is fully compliant with all laws, rules and regulations and "confident that truth will prevail".
"It is pertinent to note that in the SEBI application filed before the Hon'ble Supreme Court, there are no conclusions of any alleged wrongdoing," an Adani Group spokesperson said in the statement. "The SEBI application only cites the allegations made in the short-seller's report, which are still under investigation."
The Supreme Court, while directing the setting up of a six-member panel headed by former judge Justice AM Sapre, had said that it was appropriate to set up such a panel of experts in order to protect the Indian investors against volatility of the kind witnessed in the recent past.
The court-appointed Justice Sapre panel is to be provided assistance by the Centre and other statutory agencies, including the SEBI chairperson.
Adani Group stocks had taken a beating on the bourses after Hindenburg Research made a litany of allegations, including fraudulent transactions and share-price manipulation, against the business conglomerate. The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.
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