New Hindenburg Report Creates 'Atmosphere Of Doubt', SEBI Should Conclude Probe Against Adani : Plea In Supreme Court

In the wake of the latest report published by Hindenburg Research levelling allegations of conflict of interest on the part of SEBI Chairperson Madhabi Puri Buch, an application has been filed in the Supreme Court seeking to accept an earlier application which sought to direct the Securities and Exchange Board of India (SEBI) to complete the pending investigations against the Adani group of companies.

The application has been filed by Vishal Tiwari, who was one among the petitioners who filed the petitions in 2023 seeking SIT/CBI investigation into the allegations made by Hindenburg in January 2023 regarding stock market manipulation by Adani group.

In January this year, the Supreme Court had dismissed the plea for CBI/SIT probe, endorsing the SEBI's investigation. While dismissing those petitions, the Court asked the SEBI to conclude the ongoing investigations "preferably" within three months.

In June this year, Tiwari filed an application in his disposed-of writ petition, seeking, among other reliefs, to direct the SEBI to complete the investigations as per the time-line mentioned in the January judgment.

On August 5, the Registrar Judicial (Listing) of the Supreme Court passed an order refusing to receive the application. In the order, the Registrar stated that the Supreme Court had not passed any categorical direction to complete the investigation within three months, as the word "preferably" was used. Regarding the other relief sought by the applicant that the Union and the SEBI should submit a status report on the acceptance of the recommendations of the expert committee on strengthening the stock market regulations, the Registrar stated that the Court had not directed the submission of such a status report.

The Registrar also mentioned that the review petition filed against the January judgment has also been dismissed.

Challenging the Registrar's refusal to receive the application, Tiwari has now filed another application. In this application, he referred to the latest Hindenburg report, which alleged that the SEBI Chairperson and her spouse had investments in offshore funds which are linked to Adani companies. Since report has created an "atmosphere of doubt", the applicant said that "it becomes incumbent for SEBI to conclude the pending investigations and declare theconclusion of the investigations."

He argued that the mere usage of the word "preferably" in the judgment cannot mean that the Court did not lay down any categorical direction.

"By using the word “preferably” it cannot be understood that no timeline was fixed. When Specifically three months have been mentioned in the order, it is sufficient to be understood as a prudent that a fixed time period is laid down for the completion of the pending investigations," the applicant stated.

Regarding the dismissal of review petition, the applicant stated that it was a review petition filed by another petitioner (Anamika Jaiswal) and that the dismissal of review petition cannot be a ground to not entertain the application, which raises different grounds.

With these arguments, he has sought the acceptance of his application seeking directions to the SEBI to complete the investigation in the Adani-Hindenburg matter