Shares of 9 out of 10 Adani Group companies fell, with Enterprises shares down around 2%.
The Supreme Court has adjourned the hearing of the Adani-Hindenburg case to today i.e. Friday (October 13). According to media reports, the Supreme Court will now hear the case on October 20.
According to reports, market regulator Securities and Exchange Board of India i.e. SEBI is going to present a new status report in this matter today. The report itself was supposed to be heard in the Supreme Court, which has now been postponed.
A Nice Shiny New Adani-Hindenburg Case Hearing Adjourned: October 20.
Top23News- Advertisement -
Shares of 9 out of all 10 listed companies of the group fell
Meanwhile, 9 out of all 10 listed companies of the Adani Group are witnessing decline. Shares of Adani Enterprises, the group’s flagship company, fell around 2%. Apart from this, the shares of Adani Wilmar, Power, Green Energy, Transmission, Total Gas, Ambuja Cement, ACC and NDTV are also seen falling. While only Adani Ports is witnessing marginal growth.
A fresh plea was filed in the case last month
Last month, a fresh petition was filed in the Supreme Court in the Adani-Hindenburg case. It was requested to form a new expert committee. Petitioner Anamika Jaiswal filed this petition through her lawyer Ramesh Kumar Mishra.
The petition said that persons should be included in the committee, whose image was unblemished and who had nothing to do with the Adani-Hindenburg case. Experts from finance, law and stock market should also be included in the committee.
On January 24, 2023, American short-seller company Hindenburg Research leveled allegations against the Adani Group ranging from money laundering to stock manipulation. The Supreme Court constituted a 6-member committee to investigate the matter.
Adani-Hindenburg Case Hearing Adjourned
MM Sapre heads the six-member committee
The committee was headed by retired judge AM Sapre. Along with him, Justices JP Deodhar, OP Bhat, MV Kamath, Nandan Nilekani and Someshekhar Sundaresan were also included in the committee. The committee released its inquiry report on 19 May 2023.
Issues in the report of the expert committee…
The committee said in the report – SEBI suspects that 13 foreign funds investing in the Adani Group have links with the promoters.
No wash trade pattern was observed in Adani Group shares. A wash trade is buying and selling shares manually to increase volume.
Several institutions took short positions before the Hindenburg Report was published. When the stock price fell, he bought it and made a profit.
In the new petition OP Bhat, K.V. Questions on Kamath and Someshekhar Sundaresan
In the new petition, expert committee members and former State Bank of India chairman OP Bhatt, K.V. Questions were raised on the involvement of Kamath and Someshekhar Sundaresan. The petition stated that there is a conflict of interest due to these members joining the committee. Adani-Hindenburg Case Hearing Adjourned
OP Bhat is the Chairman of GreenCo, a renewable energy limited company. Greenco and Adani Group are in close partnership to provide energy from March 2022.
KV Kamath is also named in the CBI FIR in the fraud case related to ICICI Bank MD Chanda Kochhar. KV Kamath was the Chairman of ICICI Bank from 1996 to 2009.
What has happened so far in this matter after the Hindenburg report
1. First filed four PILs :
In the petition, Manohar Lal Sharma sought an inquiry and an FIR against Nathan Anderson, the founder of Hindenburg Research in India, and his associates. Along with this, it was also demanded to ban the media coverage in this matter.
Vishal Tiwari constituted a committee headed by a retired SC judge and demanded an inquiry into the Hindenburg Report. In his petition, Tiwari talked about the situation people have to face when share prices fall.
Jaya Thakur questioned the role of Life Insurance Corporation of India (LIC) and State Bank of India (SBI) in this matter. He demanded an inquiry into the role of LIC and SBI in the massive investment of public money in Adani Enterprises.
In his petition, Mukesh Kumar sought instructions from SEBI, ED, Income Tax Department, Directorate of Revenue Intelligence for investigation. Mukesh Kumar filed this petition through his lawyers Rupesh Singh Bhadauria and Mahesh Praveer Sahai.
2. The Court constituted a 6 member committee on March 2, 2023
The Supreme Court appointed retired Justice AM Sapre as the head of the 6-member committee. Along with him, Justices JP Deodhar, OP Bhat, MV Kamath, Nandan Nilekani and Someshekhar Sundaresan were included in this committee. A bench of Chief Justice DY Chandrachud, Justice PS Narasimha and JB Pardiwala ordered the formation of the committee on March 2.
3. SEBI asked to examine these 2 aspects
Was there violation of Rule 19(A) of the Securities Contract Regulation Rules?
Was there any manipulation of stock prices in violation of existing laws?
4. SEBI got additional time from Supreme Court for investigation
The Supreme Court had given time till August 14 to submit the investigation report to SEBI. Earlier on March 2, the court had given SEBI two months time for the investigation. That means he had to submit his report by May 2. However, Sebi had said that the transactions of the Adani group are very complex, so it needs at least 6 months for the investigation.
Rule 19 (A) deals with minimum public share holding
Rule 19 (A) of Contract Regulation Rules deals with minimum public shareholding of listed companies. According to Indian law, at least 25% of the shareholding in any listed company should be public i.e. non-insiders.
The Hindenburg Research report alleges that Gautam Adani’s brother Vinod Adani runs shell companies abroad. Through this, billions of dollars were transferred to listed and private companies of the Adani Group in India. This helped the Adani group evade the law.