Adani-Hindenburg Case: SEBI submits report to Supreme Court, hearing to be held on August 29 - Newztezz Online


Friday, August 25, 2023

Adani-Hindenburg Case: SEBI submits report to Supreme Court, hearing to be held on August 29

SEBI has submitted its report to the Supreme Court in the Adani-Hindenburg case. SEBI was investigating 24 cases, in which 22 final and 2 interim reports have been submitted. SEBI says that the update of the report of two external agencies is awaited.

The market regulator has submitted the investigation report of the Adani Hindenburg case to the Supreme Court. SEBI told the Supreme Court in an affidavit that it was investigating 24 cases in the Adani-Hindenburg case, out of which 22 are final and 2 have interim reports. He is waiting for the update of external agencies for the final report of 2 investigations. SEBI said that 'appropriate action will be taken based on the results of the investigation. 13 overseas units of Adani's companies were involved in the interim investigation. SEBI has sought details on FPI from five countries. FPIs are constituents of a group of non-promoters/public shareholders in listed companies. According to SEBI, listed companies will have to maintain at least 25 per cent MPS.

13 overseas units included

For one of its interim reports, SEBI said it included 13 foreign entities, which were categorized as public shareholders of Adani group companies. Sebi said many of the entities linked to these foreign investors are located in tax haven jurisdictions, therefore establishing economic interest shareholders of the 12 FPIs remains a challenge. In the last week of January, Hindenburg Research had presented a report, in which Gautam Adani's group was accused of the biggest accounting fraud. After which the matter reached the Supreme Court. The Supreme Court had asked SEBI to look into the allegations and submit its findings to a six-member panel constituted in March, which also included a retired judge and veteran banker.

15 days' extension was sought

The Supreme Court had set a deadline of August 14 for SEBI to complete its investigation and submit the report. The matter is listed for hearing on 29 August. On August 14, SEBI had sought 15 days' time to conclude the investigation and submit the status report of its investigation into the Hindenburg Report against the Adani Group. The regulator had earlier identified 13 specific deals which it was looking into to see if they legally fall under related party transactions.

Adani Group can cover all loans

Adani Group said that the cash and profit generated from its vast infra business can cover all the loans maturing every year in the coming decade. In a credit report released on Thursday, the power-to-port group founded by billionaire Gautam Adani said cash flow generated from business operations and balances stood at Rs 77,890 crore ($9.4 billion) at the end of March. This gives the company enough liquidity to cover the outstanding debt of this financial year.

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