Supreme Court grants SEBI 3 months for pending probes in Adani-Hindenburg case verdict
03 Jan 2024
In a significant ruling on Wednesday, 4 January 2023, the Supreme Court declared that there are no grounds to transfer the investigation of the Adani group of companies, as detailed in the Hindenburg report, away from the jurisdiction of the market regulator. The apex court granted a three-month window to the Securities and Exchange Board of India (SEBI) to conclude its ongoing inquiry into two pending matters related to the Adani group.
The bench, led by Chief Justice DY Chandrachud and accompanied by justices JB Pardiwala and Manoj Misra, had reserved the judgment on 24 November 2023. Their decision underscored the lack of basis to question the legitimacy of SEBI’s investigative process.
In addition to this, the Supreme Court mandated that both the central government and SEBI examine whether Hindenburg Research had violated any laws pertaining to short-selling. Should any violation be identified, appropriate legal action will be taken by the authorities.
This ruling reinforces confidence in SEBI’s role as the market regulator and ensures a comprehensive review of the allegations against the Adani group within a specified timeframe.
