Shares of Adani group companies continued to hold gains in intra-day deals on Wednesday after the Supreme Court granted the market regulator, Sebi, three more months to complete its investigation. The Supreme Court, on Wednesday, said that there were no grounds for taking away the investigation of the Adani group of companies in the Hindenburg report from the markets regulator. It granted the Securities and Exchange Board of India (Sebi) three months to complete the investigation of two pending matters.
The Court also said that the Centre and Sebi will look into whether Hindenburg Research has violated the law on short-selling. Earlier in the day, shares of Adani group companies rallied up to 12 percent on the BSE in Wednesday’s intra-day trade as the Supreme Court is expected to announce its verdict in the Adani-Hindenburg case.
Among individual stocks, Adani Energy Solutions surged 12 percent to Rs 1,193.05, while Adani Total Gas soared 10 percent to Rs 1,100, followed by Adani Green Energy (9 percent at Rs 1,740), New Delhi Television (9 percent at Rs 296), Adani Wilmar (7 percent at Rs 391), Adani Enterprises (6 percent at Rs 3,094.85), Adani Power (5 percent at Rs 544.65), Adani Ports And Special Economic Zone (4 percent at Rs 1,117.10), Ambuja Cements (2 percent at Rs 541.45) and ACC (2 percent at Rs 2,305). In comparison, the S&P BSE Sensex was down 0.23 percent at 71,723 at 09:311 AM.
Adani Enterprises in its FY23 annual report said that a US-based short seller report was a combination of targeted misinformation and outdated, discredited allegations aimed at damaging the reputation and generating profits through a deliberate drive-down of the group firms stock prices.
“Even though we promptly issued a comprehensive rebuttal, various vested interests tried to exploit the claims made by the short seller opportunistically. These entities engaged and encouraged false narratives across various news and social media platforms,” Adani group’s flagship company said.
Consequently, the Hon’ble Supreme Court of India constituted an Expert Committee to investigate this matter. It comprised individuals known for their independence and integrity. The report of the Expert Committee was made public in May 2023. The expert committee in its report had found no prima facie lapse on the part of the Securities and Exchange Board of India (SEBI) in the matter.
While reserving the verdict, the Supreme Court had said it has no reason to “discredit” SEBI, which probed allegations against the Adani group, as there was no material before it to doubt what the market regulator has done and the court does not have to treat what was set out in the Hindenburg report as a “true state of affairs”.
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