In a landmark decision, the Supreme Court of India has upheld the ongoing Securities and Exchange Board of India (SEBI) investigation into the Adani-Hindenburg case. Dismissing petitions seeking the transfer of the probe to a Special Investigation Team (SIT), the Court asserted the adequacy and credibility of SEBI’s inquiry.
The bench, led by Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra, emphasized that the George Soros-led Organised Crime and Corruption Reporting Project (OCCRP)’s report couldn’t serve as a basis to question SEBI’s findings. Stressing the limited jurisdiction to intervene in SEBI’s regulatory domain, the Court highlighted the absence of grounds to challenge SEBI’s actions, including amendments to Foreign Portfolio Investors (FPI) and Listing Obligations and Disclosure Requirements (LODR) regulations.
While acknowledging SEBI’s progress in investigating 20 out of 22 matters, the Court directed the regulatory body to conclude the remaining cases within three months. The ruling also urged the government and SEBI to examine the Hindenburg report’s implications on Indian investor interests and take appropriate lawful actions if any legal violations are identified.
Furthermore, the Supreme Court cautioned against frivolous Public Interest Litigations (PILs) reliant on unverified reports, emphasizing the necessity for diligent research before filing such petitions.
The decision follows petitions alleging stock price manipulation by the Adani Group, which faced sharp declines following the Hindenburg Research report.
