India top court panel gives clean chit to embattled Adani Group, says no regulatory failure

The committee, which features domain experts, also said that there was no price manipulation on part of the Indian conglomerate.

• Shubham
• 19 May, 2023

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By: Shubham Ghosh

A panel appointed by India’s Supreme Court examining the regulatory mechanism in a probe linked to US-based short seller Hindenburg’s allegations on Friday (12) gave a clean chit to Indian conglomerate Adani Group, saying it appears there was no regulatory failure on part of the Securities Exchange Board of India (SEBI), the country’s market regulator.

The committee, which features domain experts, also said that there was no manipulation of price on part of the company and that it had followed necessary steps to comfort the retail investors. According to the panel, the mitigating measures taken by the conglomerate had helped in building confidence in the stock and the stocks are currently stable, NDTV reported.

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The NDTV said that in a report submitted to the top court, the panel mentioned, “At this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation.”

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It added that there is a requirement for an effective enforcement policy which is “coherent and consistent” with the legislative position adopted by SEBI.

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The apex court had appointed the committee of domain experts alongside the investigation that the regulator was conducting into Hindenburg’s allegations against the Adani Group.

In January, a report by Hindenburg alleged that Adani Group companies had engaged in “brazen” stock manipulation and accounting fraud for years.

It also said its companies had “substantial debt”, putting the entire group on a “precarious financial footing”.

The Adani Group categorically denied the allegations.