SEBI says allegations that it's probing Adani group since 2016 are 'baseless'

The Securities and Exchange Board of India (SEBI) on Monday filed a fresh affidavit in the Supreme Court in relation to the Adani Group-Hindenburg case. In its affidavit, the capital markets regulator said that the allegations that SEBI has been probing Adani Group since 2016 to be factually 'baseless.'

According to the capital markets regulator, global depository receipts (GDRs) have been issued against 51 listed companies, in respect of which an investigation was conducted. However, no listed company of Adani Group was part of the aforesaid 51 companies. "Pursuant to the completion of the investigation, appropriate enforcement actions were taken in this matter. Hence the allegation that the Securities and Exchange Board of India ("SEBI") is investigating Adani since 2016 is factually baseless," SEBI said in the affidavit.

The capital markets regulator, in its affidavit, also stated additional reasons for more time to complete the investigation in the Adani-Hindenburg case. While filing the affidavit, the capital markets regulator said that the additional six months time is required "to ensure that justice is carried out while keeping the interest of investors” and that an incorrect or premature conclusion without full facts would not serve justice and “would be legally untenable."

The development comes two days after SEBI, on May 12, sought an additional six months' time to complete the investigation of Adani Group companies against the alleged stock market manipulation. An apex court bench headed by Chief Justice of India (CJI) DY Chandrachud and Justices PS Narasimha and JB Pardiwala, on March 2, asked market regulator SEBI to "expeditiously" conclude its probe in the Adani-Hindenburg matter within two months. The timeline by Supreme Court ended on May 2.

Stating "six months to be an unfair time," the apex court said that SEBI cannot take an "indefinitely long period." The apex court told SEBI said that it could allow not more than three months to complete the investigation and said that the matter would be placed on August 14.

Last month, Gautam Adani-led Adani Group said that there are no conclusions of any alleged wrongdoing in the market regulator's application filed before the Supreme Court.

"We understand that SEBI has approached the Hon'ble Supreme Court for more time to conclude its investigation. We have welcomed the investigation, which represents a fair opportunity for everyone to be heard and for all issues to be addressed," Adani Group said in a statement. The port-to-power conglomerate said that it is fully complying with SEBI. SEBI is conducting an investigation into allegations made by a U.S.-based short seller in January this year.

 U.S. short-seller Hindenburg Research had accused the Gautam Adani-led conglomerate of "pulling the largest con in corporate history". The conglomerate, however, called the allegations "malicious", "baseless" and a "calculated attack on India".