India’s top court asked the markets regulator to close its investigation into Hindenburg Research’s scathing allegations against the Adani Group by Aug. 14, allowing it about three more months after the watchdog failed to meet the two-month deadline set in early March.
(Bloomberg) — India’s top court asked the markets regulator to close its investigation into Hindenburg Research’s scathing allegations against the Adani Group by Aug. 14, allowing it about three more months after the watchdog failed to meet the two-month deadline set in early March.
The Supreme Court of India on Wednesday also told Securities and Exchange Board of India, or SEBI, to submit a detailed status report on its probe into Hindenburg’s accusations of corporate fraud against Gautam Adani’s conglomerate as well as any violations of insider trading regulations. Adani Group has denied the shortseller’s claims.
The court instructed SEBI on March 2 to look into these bombshell allegations that have wiped out more than $100 billion off the Indian conglomerate’s market value since end of January. It simultaneously set up a six-member expert panel to look into any regulatory failures and suggest reforms for investor protection. The next court hearing is scheduled for July 11.
The probe is an opportunity for India’s top court and markets regulator to show their willingness to scrutinize the country’s powerful conglomerates and align them closer to global standards of corporate governance.
Court Probe of Adani Shortseller Saga Tests India’s Institutions
While the panel submitted a tentative report to the court last week — just a little beyond the two-month deadline — SEBI sought a six-month extension citing lengthy procedures in obtaining financial data locally as well as overseas.
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