Petitioner seeks SC's direction to SEBI to submit explanation for not complying timeline on Hindenburg matter

Advocate Vishal Tiwari, who is the petitioner-in-person in the matter, apprised the top court that despite the deadline given to the SEBI it has failed to comply with the direction of the top court and has not submitted the final conclusion/report as per the directions of the Court.

In a fresh application, Adcocate Tiwari has urged the top court to issue various directions including direction to the Expert committee constituted to conduct a detailed investigation with respect to the report and allegations of Stock manipulations and Secret Investments published by Organised Crime and Corruption Reporting Project (OCCRP) and to direct the Government and SEBI for the implementation of the suggestions and measures given by the Expert Committee.

The petitioner also sought to direct the SEBI to submit an explanation for not complying with the timeline framed by the top Court in the order dated May 17 and other connected matters for completing the investigation and Submitting the report.

"That the Expert committee constituted by this Court is still working for the assistance of this court in the present matter and has not been discharged. And as the issue has again risen by the new disclosures and report of Organised Crime and Corruption Reporting Project (OCCRP) against Adani Group, the need has arisen to get it investigated by the independent body constituted by this Court," the application copy said.

"That the primary focus was that in future what steps shall be taken to strengthen the Regulatory system so that the investors could be protected and their investment in the share market may remain safe. After the publication of the Hindenberg report against the Adani Group a big Surge in the share market was seen and thousands of crores of the investor's money got lost," it added.

The petitioner's application further stated that the question arises whether the present Regulatory Authority is efficient enough or if some changes are required by setting up a new Regulatory body with a more efficient mechanism so that in the future such damaging incidents may not occur in the share market and the investor's money may be protected.

"A strong mechanism is also required to keep vigil upon the companies conduct and practise that whether they are complying with necessary rules and regulations laid down by the regulatory Authority," the application copy said.

Earlier the Securities and Exchange Board of India (SEBI) filed a status report before the Supreme Court apprising it that out of 24 investigations arising out of the Hindenburg report, 22 are final in nature and 2 are interim in nature.

The investigation was carried out in compliance with the directions of the top court's order dated March 2, 2023, SEBI has investigated 24 matters.

In May, the top court gave three months more time to the Securities and Exchange Board of India (SEBI) to conduct a probe into the Hindenburg report SEBI was granted time till 14th August 2023 to conduct the probe.

Supreme Court, on March 2, set up an expert committee on the issue arising from the Hindenburg Research report on Adani Group companies. The committee will consist of six members, headed by former apex court judge Justice AM Sapre.

The top court had then asked SEBI to file a status report within two months.

The apex court was then hearing petitions pertaining to the Hindenburg report, including the constitution of a committee relating to regulatory mechanisms to protect investors' interests.

The January 24 Hindenburg report alleged stock manipulation and fraud by the conglomerate.

The Adani Group has attacked Hindenburg as "an unethical short seller", stating that the report by the New York-based entity was "nothing but a lie". A short-seller in the securities market books gains from the subsequent reduction in the prices of shares. (ANI)