Supreme Court dismisses application for expedited SEBI investigation into Adani-Hindenburg case

The Supreme Court on Monday dismissed an application seeking directions to the Securities and Exchange Board of India to complete the pending investigation expeditiously and give final report into the US-based Hindenburg Research's allegations against the Adani Group.

The apex court also upheld its registrar's order that refused to accept the application by petitioner-in-person, advocate Vishal Tiwari, wanting a direction to the SEBI and the government to file a status report on the progress made on the recommendations given by the SC-appointed Justice Sapre panel.

In March 2023, the top court had formed a six-member committee headed by former Supreme Court judge A.M. Sapre to investigate the research firm's allegations of stock manipulation against the Adani Group. While the committee in its report stated that it could not conclude that there was regulatory failure by SEBI in the case, the SC had asked the government and SEBI to consider the Sapre panel's recommendations to strengthen Indian investors' interest.


In the Adani-Hindenburg case, the top court had last year in January held that there was no ground to transfer the SEBI's probe either to a special investigation team or the Central Bureau of Investigation. It refused to give any directions or interfere with the SEBI's jurisdiction, noting that the latter's regulations do not suffer from any infirmities. Noting that the SEBI has completed investigation in 20 out of 22 matters in the Adani-Hindenburg case, the apex court had directed the market regulator to complete its probe in the remaining two cases within three months.

Tiwari in his application had also highlighted the new Hindenburg Research’s allegations that were published in August where it claimed that SEBI chairperson Madhabi Puri Buch created an “atmosphere of doubt”, making it incumbent for the SC to conclude its probe against the Adani Group.

The report alleged that Buch and her husband, Dhaval Buch, held stakes in offshore funds which were also allegedly used by Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani, to invest in Indian stocks, including in Adani Group companies. This raised the prospect of conflict of interest in SEBI's investigation of the Hindenburg Research's previous allegations against the Adani Group, the report had said.

The petitioner said that Buch had denied these allegations as baseless and the apex court had also held that third-party reports cannot be considered.

The SC in its January 3 last year’s judgement had declined to order a CBI or SIT probe on the grounds that the market regulator was conducting a “comprehensive investigation” that “inspires confidence.” Noting that the SEBI has completed investigation in 20 out of 22 matters in the Adani-Hindenburg case, it had then said that no apparent regulatory failure can be attributed to SEBI and there was prima facie no deliberate inaction or inadequacy in the investigation by it.

Tiwari is also one of the petitioners in the original case that led to the Supreme Court's January 3 directive.