Adani-Hindenburg Case: SC refuses to interfere in SEBI investigation, says regulator should complete investigation in 3 months

The Supreme Court has refused to interfere in the SEBI investigation on the allegations of Hindenburg Research. A bench of three judges has given its verdict in the case related to Hindenburg Research's allegations against Adani Group. The court had handed over the investigation of 22 cases to SEBI, in which investigation of two is still pending. The court has directed SEBI to complete the pending investigation within three months.

In a major relief to the Adani Group, the Supreme Court on Wednesday said that it cannot come under the purview of the regulatory regime and the Hindenburg report or anything like that cannot be the basis for ordering a separate investigation. The court said that SEBI will proceed and continue its investigation as per law. The top court said that there is no basis to prove that SEBI was lax in taking action. Furthermore, the court said that at present there is no ground to transfer the case to CBI. The decision further said that the government and SEBI will investigate the allegations of violation of law, if any, made by Hindenburg on short-selling and action will be taken in the matter as per law. The Supreme Court has asked the Central Government and SEBI to consider the recommendations of the expert committee to strengthen the regulatory framework. The Supreme Court has refused to conduct investigation by a Special Investigation Team (SIT) in the Adani-Hindenburg case.

This decision was given by a three-judge bench of Chief Justice of India Justice DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra. The Chief Justice said there is no valid ground to direct SEBI to quash its amendments on FPI and LODR regulations. SEBI has completed an investigation in 20 out of 22 cases. "Keeping in view the assurances of the Solicitor General, we direct SEBI to complete the investigation in the other two cases within 3 months," the court said.