The Supreme Court (SC) today granted capital markets regulator SEBI (Securities and Exchange Board of India) an extension of three months till August 14, 2023, in relation to the regulator's inquiry into the Adani Group-Hindenburg case.

SEBI on May 12, 2023, had sought additional six months' time to complete the probe in the Adani-Hindenburg case, saying this much time is required “to ensure that justice is carried out while keeping the interest of investors”.

Solicitor general Tushar Mehta representing SEBI told the apex court that linking SEBI's 2016 probe to the current development with regards to the controversial Hindenburg report will not be correct as they are totally "different and distinct".

Senior advocate Prashant Bhushan told the court that SEBI has been probing the Adani group companies for many years and that it should make the status of those inquiries on record. He alleged the demand to seek an extension is an attempt to shield the conglomerate.

As per the SC, after granting two-month extension earlier, it has granted additional three months' additional time to the regulator with regards to the Adani-Hindenburg case. It said SEBI must share the status of the inquiry by August 2023.

SEBI meanwhile had earlier said the allegations that it is probing Adani Group since 2016 are factually “baseless”. It said global depository receipts (GDRs) had 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.

Amid the latest row after the capital markets regulator denied probing the Adani group since 2016, the finance ministry said it stands by its July 2021 reply in which it had said the market regulator was investigating some of the companies of the conglomerate. The Congress party, however, while giving reference of minister of state for finance Pankaj Chaudhary's reply in the Lok Sabha on July 19, 2021, termed it as equivalent to "misleading Parliament".

Gautam Adani-led Adani Group had last month said that there are no conclusions of any alleged wrongdoing in the market regulator's application filed before the Supreme Court. SEBI is conducting an investigation into allegations made by a U.S.-based short seller in January 2023. 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".

Meanwhile, the Adani Ent stock is currently trading down at 0.75% at ₹1,877.6 as compared to the previous session closing of ₹1,889.15 on the National Stock Exchange. All other nine companies under the Adani group are trading in red, with Adani Total and Adani Transmission falling the most at 5% and 3.49%, respectively.

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