Fresh plea in SC against more time to Sebi for Adani probe

A fresh application has been filed asking the Supreme Court not to grant more time to the Securities and Exchange Board of India (Sebi) for completion of its probe into US shortseller Hindenburg Research's allegations of fraud, misgovernance, and stock price manipulation by the Adani Group. This may "prolong the matter and cause inordinate delay," it said.

Opposing the market regulator's plea for extension of six months, lead petitioner, Vishal Tiwari, said, "(The delay) may allow the various corporate entities which are under the umbrella of investigation to manipulate important data... and may cause tampering of evidence."

He said that the reasons for the extension of time are "not acceptable" as Sebi had already got sufficient time to inspect, examine, collect and cease the relevant documents, data, information, etc.


"Sebi is trying to make the investigation process endless and delay will grant benefit to the wrongdoer companies and promoters," the application stated, adding that the issues framed for investigation by the SC "are very specific."

The stock market watchdog in its application had said it has "crystallised a prima facie view" in some issues such as 12 transactions for possible violations, possible breaches of related party transactions disclosures, possible corporate governance violations, possible violations of minimum public shareholding norms, and possible stock price manipulation in various stocks of Adani Group.

Tiwari also said that Sebi in its application had nowhere informed which authority, members or persons had been appointed to investigate the "sensitive" issue.

The Supreme Court had on March 2 given Sebi two months to look into issues such as whether the Adani Group manipulated stock prices of its companies.