Mumbai: The Securities and Exchange Board of Indi (Sebi) on Sunday said it has completed all but one of the investigations into allegations against the Adani Group.
The capital markets regulator said it had completed 23 out of 24 investigations, adding that it has issued over 100 summons and 1,100 letters and emails to the Adani Group. Refuting the allegations of inaction made by Hindenburg Research in its latest blog on 10 August, Sebi said it had issued communications to domestic and foreign regulators, and examined over 12,000 pages of documents.
“In its order of 3 January 2024, Supreme Court noted that Sebi had completed 22 out of 24 investigations into the Adani group. Subsequently, one more investigation was completed in March 2024, and one remaining investigation is close to completion,” it said in a statement.
The wide-ranging probe was initiated on 2 March following a Supreme Court directive in response to a public interest litigation (PIL) plea over allegations made against the group by US-based short-seller Hindenburg Research on 24 January 2023.
In an affidavit submitted before the apex court last year, Sebi elaborated that out of the 24 investigations, two pertained to manipulation of stock prices, 13 are on Adani Group’s alleged failure to disclose related party transactions, and eight related to possible violations of Sebi’s foreign portfolio investment rules, substantial share acquisition norms and insider trading regulations.
The regulator said it has thoroughly analyzed trading patterns to assess possibilities of price manipulation. While doing so, Sebi has also scrutinized trading by three clusters of FPIs.
In the press release, Sebi said that following the completion of investigations, it initiates quasi-judicial enforcement proceedings which comprise of issuing of show cause notice to give an opportunity of hearing. “This culminates in the passing of a speaking order which is then made available in the public domain. As a matter of policy, Sebi said it refrains from commenting on any investigation and ongoing enforcement matter,” the regulator said.
On Sunday, Sebi also refuted Hindenburg’s claim that since Buch was appointed the chairperson in March 2022, Sebi proposed and implemented a raft of legislation on real estate investment trusts, or Reits. These it claimed, were of “significant benefit to Blackstone as one of the largest Reit sponsors in India, whom her husband works for.”
“As with all cases involving introduction of a new regulation or amendment to an existing regulation, a robust consultation process for seeking inputs and feedback of the industry, investors, intermediaries, relevant advisory committee and the public at large is in place,” it said.
According to Sebi, claims that such regulations, changes to regulations or circulars issued related to Reits were to favour one large multinational financial conglomerate, are inappropriate.
Meanwhile, Madhabi Puri Buch and her husband Dhaval Buch said in a statement on Sunday that Dhaval’s appointment, in 2019, as senior advisor to Blackstone Private Equity was on account of his “deep expertise in supply chain management” and “pre-dates Madhabi’s appointment as Sebi Chairperson”.
