NEW DELHI: Markets regulator Sebi told the Supreme Court on Monday that it is comprehensively reviewing the Hindenburg research report allegations against Adani Group companies, as well as the movement of share prices before and after the publication of the report, using its powers under three regulations and rules governing offshore derivative instruments (ODI) and short sales.
In a note submitted by Attorney General Tushar Mehta to a panel led by CJI DY Chandrachud, the regulator said: “Sebi is already investigating both, the allegations made in Hindenburg report as well as the market activity immediately preceding and following the publication of the report, to identify violations of Sebi regulation.”
“As the matter is in the early stages of consideration, it may not be appropriate to list details of ongoing proceedings at this stage,” he said.
Opposing in principle to the revision of the existing market regulatory framework, Sebi said GDP in CS relates to the share price fluctuations of a single group of companies, which had no “significant market or systemic impact ensure a system-wide review of the regulatory frameworks in place”.
“The entity-level issues that have come to light have had a significant impact at the entity level and deserve a thorough regulatory review, which has already been undertaken,” Sebi said.
He discussed both the negligible impact of the Adani Group company’s shares on the stock markets and the modus operandi of short sellers like Hindenburg. “While (Adani) group shares have seen significant price declines due to selling pressure, the broader Indian market has shown full resilience. The combined weight of (Adani) group companies in sensex is zero and in Nifty it is less than 1 percent,” Sebi said.
He said short sellers like Hindenburg, a US-based firm, research companies they believe have governance and/or financial issues.
In a note submitted by Attorney General Tushar Mehta to a panel led by CJI DY Chandrachud, the regulator said: “Sebi is already investigating both, the allegations made in Hindenburg report as well as the market activity immediately preceding and following the publication of the report, to identify violations of Sebi regulation.”
“As the matter is in the early stages of consideration, it may not be appropriate to list details of ongoing proceedings at this stage,” he said.
Opposing in principle to the revision of the existing market regulatory framework, Sebi said GDP in CS relates to the share price fluctuations of a single group of companies, which had no “significant market or systemic impact ensure a system-wide review of the regulatory frameworks in place”.
“The entity-level issues that have come to light have had a significant impact at the entity level and deserve a thorough regulatory review, which has already been undertaken,” Sebi said.
He discussed both the negligible impact of the Adani Group company’s shares on the stock markets and the modus operandi of short sellers like Hindenburg. “While (Adani) group shares have seen significant price declines due to selling pressure, the broader Indian market has shown full resilience. The combined weight of (Adani) group companies in sensex is zero and in Nifty it is less than 1 percent,” Sebi said.
He said short sellers like Hindenburg, a US-based firm, research companies they believe have governance and/or financial issues.
