SC defers hearing of Adani-Hindenburg case; extension to Sebi yet uncertain

The Supreme Court on Monday deferred the hearing of the Adani-Hindenburg case. A bench headed by the chief justice of India (CJI) DY Chandrachud heard the arguments of various parties and was expected to pronounce the extension by the Securities and Exchange Board of India (Sebi).

The deadline was sought by the regulator to complete the probe of the allegations in the Hindenburg report.

The Sebi told the apex court that it had not probed any Adani company since 2016 and the allegations that it has been doing so are "factually baseless".

"An extension of time is needed to complete the probe in the Hindenburg report case to ensure carriage of justice," it said, according to a tweet shared by Bar & Bench.

It also said that any incorrect or premature conclusion of its probe into possible lapses of regulatory disclosures by billionaire Gautam Adani's eponymous group would not serve the interest of justice and would be legally untenable, news agency Reuters reported.

In a court filing, Sebi said that it has already approached eleven overseas regulators for information to examine if the Adani group had violated any norms regarding its publicly available shares.

Last week, the apex court said that it may grant a three-month extension to probe into the allegations of stock price manipulation by the Adani Group and lapses in regulations. The Sebi had asked the court for a six-month extension.

On March 2, the SC had asked Sebi to probe the crash of Adani group stocks following the Hindenburg report. It also asked the regulatory body to suggest ways to strengthen the regulatory framework to protect the interest of the investors.

The apex court also set up a six-member expert committee to determine if there was any regulatory failure to deal with the issue. The committee was asked to submit the report in a sealed cover in two months. The chairman of Sebi was also ordered to provide all the relevant information to the committee.

In April, Sebi moved the SC and sought a six-month extension to complete its probe.