Introduction
In the matter of Vishal Tiwari vs Union of India and ors Regarding the most recent report released by short-seller Hindenburg Research, a petition is filed alleging that the conglomerate committed fraud by artificially inflating share prices.The Adani Group reportedly experienced losses totaling $100 billion as a result of the research, which caused the share values of several Adani companies to decline.
In his petition to the Supreme Court, attorney Manohar Lal Sharma requested that the SEBI and the Union Home Ministry be directed to launch an investigation and file a First Information Report (FIR) against Nathan Anderson, the founder of Hindenburg Research, and his collaborators in India.In the second petition on the subject, attorney Vishal Tiwari demanded that a commission chaired by a former judge of the Supreme Court conduct an investigation into the Hindenburg report.In addition to demanding for the prosecution of the Adani group of companies, Congress leader Dr. Jaya Thakur’s petition has called into question the decisions of the State Bank of India (SBI) and the Life Insurance Corporation (LIC) to purchase shares of the company at allegedly inflated rates.
On March 2, the Supreme Court issued an order allowing SEBI to carry on with its investigation. The investigation had to be finished by May 2. This investigation was conducted in addition to the investigation that the highest court had the expert committee led by Justice Sapre conduct. In its submitted plea, SEBI requested an additional six months to conclude the investigation. According to SEBI, it has informed the expert committee of the status, actions taken, and preliminary conclusions pertaining to the exams and investigations it has conducted.
The market regulator argued in its appeal that the 12 suspicious transactions included in the Hindenburg report would require a thorough investigation lasting at least 15 months due to their complexity and the number of sub-transactions they contain. Additionally, the investigation would require getting bank statements from numerous domestic and foreign banks, which would be difficult and time-consuming.Chief Justice of India’s bench The SEBI application for a six-month extension to submit its investigation report was being heard by the bench.
Analysis of Supreme Court Decision
According to the Supreme Court bench made up of Chief Justice of India (CJI) DY Chandrachud, Justices PS Narasimha, and JB Pardiwala, the Securities and Exchange Board of India (SEBI) has been given three more months to complete its investigation into the controversy surrounding the Hindenburg Research report on the Adani Group of Companies and allegations against the Conglomerate.
According to the Supreme Court bench made up of Chief Justice of India (CJI) DY Chandrachud, Justices PS Narasimha, and JB Pardiwala, the Securities and Exchange Board of India (SEBI) has been given three more months to complete its investigation into the controversy surrounding the Hindenburg Research report on the Adani Group of Companies and allegations against the Conglomerate.