New Delhi: The Supreme Court On Tuesday, the Securities and Exchange Board of India (SEBI) regarding the status of the ongoing investigation into allegations of stock price manipulation by Adani Group And said that the investigation has to be completed expeditiously within the extended time given till 14th August.
Solicitor General Tushar Mehta, appearing for SEBI, told a bench headed by the Chief Justice DY Chandrachud The top court had given time till August 14 for the probe and the work is going on at a possible “legitimate pace”.
Mehta told the bench, also comprising Justices PS Narasimha and Manoj Mishra, that SEBI had filed its “constructive response” to the suggestions made by the apex court-appointed expert committee in its report filed in the court on Monday.
“We received the report of the expert committee. As far as references made to SEBI are concerned, some guidance or some suggestions have been given. We have filed our reply yesterday. It is a very constructive response… Since It was filed a bit late, it is not before your lordship,” he said.
“What is the status of the SEBI probe?” the bench asked.
Mehta said the top court has extended the time to complete the probe and the work is going on.
During the hearing, the bench said, “Your investigation should be completed as we had extended the time till August 14.”
On May 17, the apex court had given Sebi time till August 14 to complete its probe into allegations of stock price manipulation by the Adani group, and asked the market regulator to place on record an updated status report of the probe.
During the hearing on Tuesday, Mehta said that since the expert committee has made certain recommendations in its report, SEBI has given its response regarding its functioning.
The Solicitor General said, “It has nothing to do with the allegations. We would like the Advocate General to look into it.”
Advocate Prashant Bhushan, appearing for one of the petitioners, told the bench that he has filed a very detailed response to the report of the expert committee a few days back in which he has stated that the findings of the expert committee are “completely different”. The panel got the facts.
“And the facts found in the report of the expert committee clearly show that not only is there a gross regulatory failure on the part of SEBI, but there is no prospect of SEBI going anywhere with this investigation,” Bhushan said.
The court noted that Mehta has informed the bench that SEBI has filed a response to the report which was submitted by the expert committee on functioning of SEBI.
“Before the court proceeds further, it would be appropriate to circulate the reply along with the paper which has not been done since it was filed yesterday,” the bench said, adding that it be circulated and placed on record. To be kept
A lawyer representing another petitioner said that the earlier order of the apex court was specific that all agencies have to cooperate with the expert committee.
He claimed that the report of the committee says that the agencies are not cooperating.
“You get it from your imagination?” “Our order was that all the agencies shall cooperate with the Committee. We do not think the Committee has any complaint that the agencies have not cooperated,” the bench said.
Bhushan argued that the committee has said that due to the situation created by SEBI by amending the rules, its investigation cannot go anywhere.
He claimed, “They have amended the rules to remove the definition of opaque structures, they have amended the rules for related fractional transactions, they have amended the rules for beneficial owners etc. to expose such frauds.” be prevented from happening.”
Mehta said that Sebi’s response also contains details regarding the same.
“Mr. Solicitor General, on the basis of this argument, you may also go into the background which led to the amendment of the rules,” the bench said.
The bench noted that Bhushan is arguing that the amendments that have been made, for example the definition of beneficial owners, may prevent SEBI from going into the layers of transactions.
Bench adjourned hearing on several petitions Adani-Hindenburg dispute and asked SEBI to circulate its response in which the capital markets regulator has presented its views on the recommendations made by the expert committee.
It added that the matter will be taken up for hearing soon after the completion of hearing on some other petitions listed before the constitution bench, which is scheduled to begin hearing from Wednesday.
Sebi, in its application filed in the apex court on Monday, had said that the change in its 2019 rule has not made it difficult to identify the beneficiaries of offshore funds, and action will be taken if any violation is found or established.
The market regulator said it has consistently tightened rules relating to beneficial ownership and related-party transactions – key aspects in the Adani Group’s allegation of manipulating its stock price.
A Supreme Court-appointed expert committee in May said in an interim report that it did not see “any clear pattern of manipulation” in billionaire Gautam Adani’s companies and there was no regulatory failure.
However, it cited several amendments made by SEBI between 2014-2019, which hampered the regulator’s ability to investigate, and its probe into alleged violations in money flows from offshore entities “came up empty”.
On May 17, the apex court had directed that copies of the report submitted before it by the apex court-appointed Justice (Retd) AM Sapre expert committee be made available to the parties to assist them in further deliberations in the matter.
Adani Group shares had taken a sharp tumble after Hindenburg Research made several allegations against the business conglomerate, including fraudulent transactions and share-price manipulation.
The Adani Group dismissed the allegations as false and said it complies with all laws and disclosure requirements.
Solicitor General Tushar Mehta, appearing for SEBI, told a bench headed by the Chief Justice DY Chandrachud The top court had given time till August 14 for the probe and the work is going on at a possible “legitimate pace”.
Mehta told the bench, also comprising Justices PS Narasimha and Manoj Mishra, that SEBI had filed its “constructive response” to the suggestions made by the apex court-appointed expert committee in its report filed in the court on Monday.
“We received the report of the expert committee. As far as references made to SEBI are concerned, some guidance or some suggestions have been given. We have filed our reply yesterday. It is a very constructive response… Since It was filed a bit late, it is not before your lordship,” he said.
“What is the status of the SEBI probe?” the bench asked.
Mehta said the top court has extended the time to complete the probe and the work is going on.
During the hearing, the bench said, “Your investigation should be completed as we had extended the time till August 14.”
On May 17, the apex court had given Sebi time till August 14 to complete its probe into allegations of stock price manipulation by the Adani group, and asked the market regulator to place on record an updated status report of the probe.
During the hearing on Tuesday, Mehta said that since the expert committee has made certain recommendations in its report, SEBI has given its response regarding its functioning.
The Solicitor General said, “It has nothing to do with the allegations. We would like the Advocate General to look into it.”
Advocate Prashant Bhushan, appearing for one of the petitioners, told the bench that he has filed a very detailed response to the report of the expert committee a few days back in which he has stated that the findings of the expert committee are “completely different”. The panel got the facts.
“And the facts found in the report of the expert committee clearly show that not only is there a gross regulatory failure on the part of SEBI, but there is no prospect of SEBI going anywhere with this investigation,” Bhushan said.
The court noted that Mehta has informed the bench that SEBI has filed a response to the report which was submitted by the expert committee on functioning of SEBI.
“Before the court proceeds further, it would be appropriate to circulate the reply along with the paper which has not been done since it was filed yesterday,” the bench said, adding that it be circulated and placed on record. To be kept
A lawyer representing another petitioner said that the earlier order of the apex court was specific that all agencies have to cooperate with the expert committee.
He claimed that the report of the committee says that the agencies are not cooperating.
“You get it from your imagination?” “Our order was that all the agencies shall cooperate with the Committee. We do not think the Committee has any complaint that the agencies have not cooperated,” the bench said.
Bhushan argued that the committee has said that due to the situation created by SEBI by amending the rules, its investigation cannot go anywhere.
He claimed, “They have amended the rules to remove the definition of opaque structures, they have amended the rules for related fractional transactions, they have amended the rules for beneficial owners etc. to expose such frauds.” be prevented from happening.”
Mehta said that Sebi’s response also contains details regarding the same.
“Mr. Solicitor General, on the basis of this argument, you may also go into the background which led to the amendment of the rules,” the bench said.
The bench noted that Bhushan is arguing that the amendments that have been made, for example the definition of beneficial owners, may prevent SEBI from going into the layers of transactions.
Bench adjourned hearing on several petitions Adani-Hindenburg dispute and asked SEBI to circulate its response in which the capital markets regulator has presented its views on the recommendations made by the expert committee.
It added that the matter will be taken up for hearing soon after the completion of hearing on some other petitions listed before the constitution bench, which is scheduled to begin hearing from Wednesday.
Sebi, in its application filed in the apex court on Monday, had said that the change in its 2019 rule has not made it difficult to identify the beneficiaries of offshore funds, and action will be taken if any violation is found or established.
The market regulator said it has consistently tightened rules relating to beneficial ownership and related-party transactions – key aspects in the Adani Group’s allegation of manipulating its stock price.
A Supreme Court-appointed expert committee in May said in an interim report that it did not see “any clear pattern of manipulation” in billionaire Gautam Adani’s companies and there was no regulatory failure.
However, it cited several amendments made by SEBI between 2014-2019, which hampered the regulator’s ability to investigate, and its probe into alleged violations in money flows from offshore entities “came up empty”.
On May 17, the apex court had directed that copies of the report submitted before it by the apex court-appointed Justice (Retd) AM Sapre expert committee be made available to the parties to assist them in further deliberations in the matter.
Adani Group shares had taken a sharp tumble after Hindenburg Research made several allegations against the business conglomerate, including fraudulent transactions and share-price manipulation.
The Adani Group dismissed the allegations as false and said it complies with all laws and disclosure requirements.