The next hearing of the Hindenburg case will be held in the Supreme Court on October 13. The Supreme Court is going to hear the fresh status report filed by market regulator SEBI next month. Many new questions will also arise during this hearing. This week a public interest litigation was filed in the Adani-Hindenburg dispute. In which SEBI was accused of suppressing important facts from the Supreme Court and hiding the letter of Revenue Intelligence Directorate on alleged stock manipulation by Adani companies.
On August 25, SEBI had informed the Supreme Court that it has completed the investigation into all allegations except two against the Adani Group, and that the real owners of foreign entities investing in the group are still pending in five tax havens. Waiting for information.
allegations made in the petition
Anamika Jaiswal, one of the four petitioners, said that when the investigation was going on in the over-invoicing case against Adani Group. Then DRI had sent a letter to the then SEBI Chairman in 2014. In which DRI had alerted SEBI a lot. At that time, DRI said in a letter to SEBI that the group can use higher valuation methods in importing electrical components. Allegedly, the withdrawn money can be used to manipulate the stock market. The petitioner accused SEBI of suppressing important facts before the court and sleeping on DRI alert.
Adani's son's marriage with SEBI member's daughter
The affidavit said Mr Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas has been a member of SEBI's committee on corporate governance, which looks into crimes like insider trading. It has been said in the affidavit that his daughter is married to Gautam Adani's son. The petitioner said that out of 24 investigation reports of SEBI, five are on allegations of insider trading against Adani Group companies.
Reference was also made to this
Additionally, the petitioner cited documents discovered by the journalists' association 'Organized Crime and Corruption Reporting Project'. The affidavit said that two Mauritius-based companies – Emerging India Focus Fund (EIFF) and EM Resurgent Fund (EMRF) had invested and traded huge amounts in shares of four Adani companies between 2013 and 2018. The petitioner said in the affidavit that the names of these two companies are in SEBI's list of 13 suspicious foreign portfolio investments/foreign entities. SEBI has not been able to trace their ultimate beneficial owners or shareholders with economic interest. The petitioner said that Adani Group has benefited from the repeated changes made in the rules by SEBI.
Hindenburg's report came in January
In January this year, US-based short seller Hindenburg Research had alleged that Adani Group is involved in accounting fraud, stock price manipulation and improper use of tax havens. After this report, Adani Group's shares started falling heavily in the stock market, due to which the market cap of the group was reduced by 150 billion dollars.
Supreme Court gave charges of investigation
After this, the Supreme Court had asked SEBI to look into the allegations and submit its findings. In March, a separate six-member expert panel was formed to look into the regulatory aspects of the allegations. Which included a retired judge and an experienced banker. That panel had said in May that SEBI has not yet drawn any conclusion in its investigation. The Supreme Court had set a deadline of August 14 for SEBI to complete its investigation and submit the report. The regulator had asked for an extension of 15 days to complete the investigation. It has now submitted a status report on its investigation. Adani Group has rejected all the allegations.
No comments:
Post a Comment