Supreme Court Panel Clears Adani Group of Manipulation Claims
A panel of six Supreme Court members has stated that there is no evidence suggesting a failure in regulatory mechanisms following a surge in the stocks of the Adani Group. The panel, appointed by the Supreme Court, examined data provided by the Securities Exchange Board of India (SEBI) to investigate allegations made by Hindenburg Research, a US-based short-seller, regarding financial fraud and stock price manipulation by Gautam Adani's Adani Group.
In its report, the panel found no indications of regulatory failure or manipulation after analyzing the significant rise in Adani Group stocks. The panel has called upon SEBI to conduct its own independent investigation and complete it promptly. The data provided by the regulator showed no apparent pattern of manipulation in the stock prices of companies owned by Gautam Adani.
The panel's report stated that, based on the explanations and supported by empirical data provided by SEBI, it is not possible to conclude that there was a regulatory failure in relation to the allegations of price manipulation. The report also noted that the high volatility in Adani stocks was a result of the publication of the Hindenburg report and its subsequent impact.
The Supreme Court-appointed panel emphasized that the meteoric rise in stock prices could not be attributed to any single entity or connected group of entities. Led by former Supreme Court judge Justice AM Sapre, the panel's findings provide a clean chit to the Adani Group.
SEBI was initially given a two-month deadline to file its report, but it has been granted an extension until August 14 to complete its inquiries. This extension led to a political controversy after SEBI submitted an affidavit stating that reports of its investigation into the Adani Group since 2016, as claimed by some opposition leaders, are factually baseless.
Following the publication of the panel's report, nine out of ten Adani Group stocks traded higher. Adani Enterprises Ltd., the flagship company, recovered from its earlier losses and experienced a jump of up to 3.8%, while Adani Ports and Special Economic Zone Ltd. climbed 2.2%.
For Latest News Visit : Speed News
