Aug 26 – The Securities and Exchange Board of India (SEBI) has filed a new status report with the Supreme Court, informing it that 22 of the 24 probes stemming from the Hindenburg report against Adani Group are final and two are interim in nature.
SEBI stated that it will take appropriate action based on the findings of the investigations in compliance with the law in a variety of areas.
SEBI stated that it was expecting information from external authorities in two investigations. SEBI stated that it investigated 13 Adani Group transactions for potential violations of related-party transaction rules.
The regulator further stated that its probe into some offshore dealings included 12 foreign portfolio investors who were public owners of Adani Group entities, and that information on FPIs was sought from five countries.
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However, because some of these investors’ connected firms are based in tax haven jurisdictions, “establishing the economic interest shareholders of the 12 FPIs remains a challenge,” the agency stated, adding that it has requested information from five foreign nations on the subject.
FPIs are a subset of non-promoters/public shareholders in publicly traded corporations. According to SEBI, listed businesses must maintain a minimum public shareholding of 25%.
SEBI further stated that the competent authority has approved an interim report on trading in Adani group equities prior to and after the release of the Hindenburg report.
”Information from external agencies/entities is being pursued and awaited,” the report stated, adding that the interim report was authorised by the competent authority on August 24.
The listed companies of the conglomerate lost more than $100 billion in market value earlier this year after Hindenburg Research, based in the United States, raised many governance concerns. The organisation has denied any wrongdoing.
Following this, the Supreme Court directed SEBI to investigate the claims and report back to a six-member panel comprised of a retired judge and seasoned bankers, which was created in March.
The court-appointed panel stated in May that the regulator’s investigations have so far yielded no results and that its continuous pursuit of the issue is a “journey without a destination,” but it granted the regulator extra time to complete its investigation.
