Sebi seeks 6 months more to complete probe into Adani affair

The capital markets regulator Securities and Exchange Board of India (SEBI) has sought a six-month extension form the Supreme Court to complete the probe into the allegations of stock price manipulation by the Adani group and any lapses in regulatory disclosures. The SC had asked SEBI to submit its report in two months in its direction on March 2 and had also set up a panel to look into the protection of Indian investors after a report by a US short seller Hindenburg wiped out more than $140 billion of the conglomerate’s market value.

In an application moved before the court, SEBI submitted that for ascertaining possible violations, it would take six more months to complete the exercise.

“Pass an order extending the time to conclude the investigation as directed by this Court by the common order dated March 2 by a period of 6 months or such other period as this court may deem fit and necessary in the facts and circumstances of the present case,” the plea said.

SEBI said the investigation relating to 12 suspicious transactions, were are complex and have many sub-transactions.
A rigorous investigation of these transactions would require collation of data from various sources along with detailed analysis including verification of submissions made by the companies, it said.

“Applicant submits that replies and documents/information received from the companies would require reconfirmation and reconciliation, as well as independent verification.

“The detailed investigation process would also include depositions as may be required from various entities such as, Key Managerial Personnel (KMPs), statutory auditors and other relevant persons,” the plea said.

The petition also submitted the probe would require obtaining bank statements from several domestic as well as international banks and also some statements as the bank statements would also be for the transactions undertaken more than 10 years ago, this would take time and be challenging.

The apex court, while directing the setting up of a six-member committee headed by former apex court judge Justice A M Sapre for the assessment of the extant regulatory framework and for making recommendations to strengthen the process, said it was appropriate to set up such a panel of experts in order to protect Indian investors against the volatility of the kind which has been witnessed in the recent past.

The court-appointed Justice Sapre panel is to be provided assistance by the Centre and other statutory agencies including the SEBI chairperson.
The Centre had agreed to the apex court’s proposal to set up a committee, to be headed by a former Supreme Court judge, to go into the regulatory regimes.

With inputs from PTI