New Delhi: The Supreme Court on Wednesday granted the Securities and Exchange Board of India (SEBI) time till August 14 to complete its probe into the 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.
A bench headed by Chief Justice D Y Chandrachud also directed that copies of the report submitted before it by the apex court-appointed Justice (retd) A M Sapre expert committee be made available to the parties to enable them to assist it in further deliberations in the matter.
When Solicitor General Tushar Mehta, appearing for SEBI, requested the top court to consider extending the deadline till September end, the bench said, "We are not granting an indefinite extension of time. If there is some genuine difficulty, you let us know."
The bench, also comprising Justices PS Narasimha and JB Pardiwala, was hearing the pleas filed on the Adani-Hindenburg row. It was also considering the SEBI's application seeking extension of time by six months to complete the probe into allegations of stock price manipulation by the Adani group.
"SEBI is granted an extension of time till August 14, 2023 to submit its report," the bench said, adding, "SEBI shall place on record an updated status report with regard to the course of investigation."
The remit of the Justice Sapre panel was to provide an overall assessment of the situation, including the relevant causal factors which have led to volatility in the securities market in the recent past.
The panel was asked to suggest measures to "(i) strengthen the statutory and/or regulatory framework; and (ii) secure compliance with the existing framework for the protection of investors", the court had earlier said.
At the outset on Wednesday, the CJI observed, "The committee has submitted its report. It is a tentative report and now SEBI has asked for an extension of time to complete their investigation."
Advocate Prashant Bhushan, appearing for one of the petitioners, referred to a reply given by the minister of state for finance in Parliament in July 2021 about SEBI investigating some Adani group companies with regard to compliance with SEBI regulations.
He argued in recent times, despite many complaints having been made to SEBI over the last six-seven years, it appeared that they are doing "absolutely nothing despite it being written on the wall".
"You pick up something in 2016, something in 2020 and connect them with the present issue which is arising from the Hindenburg report," Mehta said while responding to Bhushan.
"I want to just clear the air. 2016 is something totally different, distinct and completely separate. My friend now wants that whatever investigations or proceedings were taken against a particular company till now should be placed on record. I don't think that is the remit but I have no difficulty," the top law officer said.
He said the minister of state for finance in his reply to Parliament on July 19, 2021 had confirmed that SEBI is investigating some Adani group companies with regard to compliance with regulations.
After the bench dictated the order, Bhushan said the court may ask SEBI to place the result of probe which they have admittedly been doing into Adani companies.
"We are dealing right now with the fallout of the Hindenburg report. The purpose of these proceedings is not for us or for any public interest petitioner to conduct a roving inquiry...," the CJI said.
During the arguments, Bhushan said if Adani group's shares increase abnormally by 10,000 per cent, 5,000 per cent etc. over a period of less than a year, then obviously "alarm bells have to be rung".
Adani Group stocks had taken a beating on the bourses after Hindenburg Research made a litany of allegations, including those about fraudulent transactions and share-price manipulation, against the business conglomerate.
The Adani Group dismissed the charges as lies, saying it complies with all laws and disclosure requirements.
