New Delhi: The stock market regulator, Securities and Exchange Board of India (SEBI), on Friday informed the Supreme Court that it has completed its probe into Adani Group companies. The SEBI in its report stated it has investigated 24 transactions involving the Adani group’s listed companies of which 22 are final in nature.
In its filling, the SEBI said that it would take appropriate action based on outcome of the investigations.
Listed companies of Adani Group had lost more than $100 billion in market value earlier this year after US-based short-seller Hindenburg Research had alleged irregularities in trade practices. The group had, however, denied wrongdoing. Following this, the Supreme Court asked SEBI to look into the allegations and submit its findings to a six-member panel formed in March, which included a retired judge and veteran bankers.
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While the SEBI filing did not outline its findings, the regulatory body said it would “take appropriate action based on outcome of the investigations”. According to media reports, SEBI is investigating 24 transactions involving the Adani group’s listed companies. Of these, findings in 22 were now final in nature. The court filing also outlined the steps taken by SEBI during the probe – including on related party transactions.
The case is likely to come up for hearing on August 29.
SEBI reportedly examined 13 Adani group dealings for possible violations of related-party transaction rules. The regulator also said its investigation on some offshore deals covered 12 foreign portfolio investors who were public shareholders of Adani group companies.
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However some of these entities are located in tax haven jurisdictions. “Establishing the economic interest shareholders of the 12 FPIs remains a challenge,” SEBI quoted in its filling, adding that it has sought information from five foreign countries on this issue.
Earlier, the Hindenburg Research report, accusing Adani Group of resorting to trade malpractices to inflate the share prices of the group’s listed companies had triggered a political slug-fest with the Congress leaders alleging tacit support from Prime Minister Narendra Modi to industrialist Gautam Adani in getting unaccounted funding from the offshore.
