Hindenburg-Adani Saga: Issue May Reach Supreme Court Again; Petitioner Will Reapproach Top Court

New Delhi: After levelling serious allegations against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and her spouse Dhaval Buch, the petitioner in the Adani-Hindenburg matter, Vishal Tiwari, has said that he will approach the Supreme Court again.

Speaking to Zee Business on Sunday, a day after the release of the latest Hindenburg report, Tiwari said, “We will move to Supreme Court so that measures are ensured for our robust stock market.”

“Prayer will be to make the conclusions of the SEBI’s investigations public and what measures are to be adopted in the future. If, there are allegations against SEBI, and its role is in question, then how SEBI can be strengthened in the future, will be an important point in prayer," he elaborated. 

Tiwari also questioned the delay in filing the status report in the Supreme Court. In January this year, the apex court granted SEBI three months to complete the investigation in the remaining two out of twenty-four cases. Still, there is no publicly available information on the conclusion of the investigation taken over by SEBI. Tiwari, who is an advocate, said, “SEBI has not yet submitted information in the court about who the short sellers were and who caused huge loss to the investors... The report is not made public. Meanwhile, Hindenburg Research has released a new report accusing the SEBI Chairperson."

However, late on Sunday, SEBI in a press release clarified on Hindenburg Research's allegations, and said: “Hon’ble Supreme Court in its Order of January 3, 2024, noted that SEBI had completed twenty-two out of twenty-four investigations into the Adani group. Subsequently, one more investigation was completed in March 2024, and one remaining investigation is close to completion... During the ongoing investigation in the matter, more than 100 summons, around 1,100 letters, and emails have been issued to seek information. Further, more than 100 communications have been made seeking assistance from domestic/foreign regulators and external agencies."  

Also, more than 300 documents containing around 12, 000 pages have been examined, it said. 

About the process of taking action, SEBI said that it may be noted that pursuant to the completion of investigations, SEBI initiates enforcement proceedings, which are quasi-judicial in nature. This comprises issuing of show cause notice and giving of opportunity of hearing which culminates in the passing of a speaking order.

Such an order is then made available in the public domain. Where investigations have been completed, enforcement proceedings initiated are ongoing, and appropriate actions are being taken in accordance with the applicable securities laws. As a matter of policy, SEBI refrains from commenting on any investigation or ongoing enforcement matter.

He also said that even leaving alone the Hindenburg report, the Supreme Court-appointed expert committee had made recommendations for the betterment of Sebi but it seems that they have not been implemented so such things give a wrong message.

(This Article First Appeared In Zeebiz.com)