New twist in Adani-Hindenburg case, ED suspects an Indian bank and these 15 foreign investors - Newztezz Online


Wednesday, August 30, 2023

New twist in Adani-Hindenburg case, ED suspects an Indian bank and these 15 foreign investors

ED has entered the Adani Hindenburg case. ED has submitted a report to SEBI, in this report doubts have been raised on the role of a private bank of India and 15 foreign investors. It is believed that new revelations may emerge on this matter soon.

A new twist has emerged in the Adani-Hindenburg case. Now the Enforcement Directorate ie ED has submitted a report to SEBI on the whole matter. At the same time, SEBI has already submitted the report of this matter to the Supreme Court. Now ED has raised suspicion on an Indian private bank and 15 investors in the case related to short selling of companies of Adani Group. According to a TOI report on Wednesday, the central probe agency has shared its intelligence related to these 16 entities with SEBI. Which includes foreign portfolio investors.

ED shared intelligence

At the same time, ED cannot register a crime investigation under the Prevention of Money Laundering Act (PMLA) unless there is a specific crime. On the other hand, SEBI can file a criminal case against any unit found involved in any suspicious activity. According to TOI, in this case, if SEBI files a complaint, it could become the basis for ED to initiate investigation under PMLA. TOI quoted sources as saying that the ED has gathered sufficient intelligence against some Indian and foreign entities involved in “suspicious” activities in the Indian stock market. Some information is related to the Hindenburg Report and the short selling done by them.

Because of this ED is suspicious

The report said that some FPIs had taken short positions two-three days before the Hindenburg Research report came out. They are being investigated to ascertain their beneficial ownership. Citing sources, the report further claims that most of these units had never dealt in Adani shares and some were trading for the first time.

SEBI submitted status report

On March 2, the Supreme Court had constituted an expert panel on the issues arising from the Hindenburg Research report on Adani Group companies. Six members were included in the committee. Which is being presided over by former Supreme Court judge Justice AM Sapre. SEBI informed the Supreme Court last week that out of 24 investigations related to the Hindenburg report, it has submitted final reports on 22 and interim reports on two. Whose updates are to come from foreign institutions.

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