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Adani-Hindenburg case: SC reserves judgment, says no reason to discredit SEBI

TOI.in / Nov 25, 2023, 21.07 PM IST

In a development that appears to grant a clean chit to the Adani Group, Chief Justice of India (CJI) Chandrachud has raised questions about the credibility of the Hindenburg Research report on the conglomerate. The report triggered a significant $125 billion crash in Adani's share price during January and February. Despite SEBI's probe into alleged violations, no charges have been brought against Adani, leading legal experts to suggest a favourable outcome for the group from both the Supreme Court (SC) and SEBI. The SC had appointed a six-member expert committee, including retired judge AM Sapre and Nandan Nilekani, which found no breaches of disclosure rules. The SC cautioned petitioner Prashant Bhushan against casting doubt on the committee's integrity, and Solicitor General Mehta revealed Bhushan's passing of documents to the George Soros-funded OCCRP. CJI Chandrachud emphasized not treating the Hindenburg report as the "true state of affairs," leading the SC to bar Bhushan from reading the report, stating it is not gospel truth. SEBI is expected to issue findings and penalties related to short selling in Indian markets, addressing Hindenburg's allegations, which include inflated share prices and Adani's perceived proximity to PM Modi, a point leveraged by the opposition to attack Modi's image. The CJI's remarks underscore the imperative of carefully considering the veracity of the Hindenburg report.

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