Plea in SC seeks conclusion of SEBI probe into Adani
What's the story
Advocate Vishal Tiwari has filed a petition in the Supreme Court, urging a speedy resolution to the Securities and Exchange Board of India's (SEBI) investigation into the Adani Group. This move comes in response to recent allegations by Hindenburg Research against SEBI's Chairperson Madhabi Puri Buch and her husband. The petition seeks to expedite an earlier plea, demanding a strict timeline for SEBI's probe into Hindenburg's January 2023 stock manipulation and money siphoning allegations against Adani Group.
Order reference
Advocate cites SC's previous order in petition
Tiwari's petition refers to the SC's January 3 order, which directed SEBI to complete its investigation within three months. However, the court did not mandate any further actions based on Hindenburg's allegations in that same order. The recent claims by Hindenburg suggest that Buch and her husband had stakes in offshore funds linked to Adani Group, potentially impacting the regulator's investigation.
Denial and demand
SEBI chief denies allegations
Buch has categorically denied Hindenburg's allegations and expressed her readiness to disclose all financial documents. Tiwari argued in his petition that these circumstances necessitate a conclusive SEBI report. He stated that Hindenburg 's latest report has created an "atmosphere of doubt in the minds of the public and investors," making it incumbent for SEBI to "conclude the pending investigations and declare the conclusion of the investigations."
Status request
Tiwari seeks status report on expert committee recommendations
Tiwari also sought a status report from both the Central government and SEBI on whether they have acted upon recommendations from a Court-constituted Expert Committee, aimed at strengthening India's securities market regulatory framework. He further called for detailed reports concerning financial losses suffered by investors following the Lok Sabha 2024 election result in July.
Application refusal
SC Registrar refused to register Tiwari's application earlier
On August 5, the SC's Registrar refused to register Tiwari's application, describing it as "thoroughly misconceived" and stating it did not have a reasonable cause. The Registrar noted that the SC had not imposed a strict deadline for SEBI's investigation, contrary to Tiwari's assertion, and stressed that the term "preferably" in the January directive did not constitute a firm deadline.