Sebi must finish Adani probe in 3 months: SC

NEW DELHI:  The Supreme Court on Wednesday granted three more months to the Securities and Exchange Board of India (Sebi) to complete its probe into the Adani group’s alleged stock manipulation. Directing Sebi to finish its inquiry by August 14, 2023, a bench of Chief Justice D Y Chandrachud and judges P S Narasimha and J B Pardiwala also asked the stockmarkets regulator to place on record its ‘updated status report’ in August.

The bench rejected Sebi’s request for time till September 30, saying it can’t allow an indefinite extension of time. Taking note of the report submitted by the SC-appointed panel headed by ex-judge A M Sapre, the bench directed that it be shared with all parties concerned. The court listed the matter for July 11 to reflect on the panel’s suggestions and hold further deliberations.

During the hearing, advocate Prashant Bhushan said Sebi had been probing Adani since 2016. “They (Sebi) have to put on record as to what has happened to the investigation,” he said. Appearing for Sebi, Solicitor General Tushar Mehta contested the claim, saying the only Sebi probe against Adani in the past was related to “possible non-compliance with minimum public shareholding (MPS)” in 2020.

Considering Mehta’s contention, the SC said Sebi’s updated status report must cover all issues. “One of the aspects which will have a bearing on what is disclosed in the Hindenburg report is the non-compliance with MPS norms,” it added.