Enquiring into allegations made in Hindenburg report against Adani's companies, SEBI tells SC

The market regulator SEBI has told the Supreme Court that it was enquiring into the allegations made in the US based short seller firm Hindenburg report against Adani group of companies as well as the market activity immediately preceding and post the publication of the adverse findings against the behemoth, to identify violations of regulations.

In a written note, SEBI asserted that it has a robust set of frameworks and market systems to ensure seamless trading and settlement including frameworks for volatility management and restrictions on short selling including by foreign institutions as well as the enforcement of market misconduct.

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“SEBI is already enquiring...to identify violations of SEBI Regulations," the market regulator said.

In response to two PILs, the SEBI said that the subject of the petition related to events that were localized to a single group of companies and that there was no significant impact at a market wide level or at a system wide level, that might warrant a system level review of the regulatory frameworks in operation.

Two separate public interest litigations raised concerns about investor protection during market volatility caused by the short seller's report.

Billionaire Gautam Adani's seven listed companies have together lost about US Dollor 120 billion in market value since Hindenburg's critical report of January 24, which included allegations of improper use of offshore tax havens and stock manipulation. The group has denied the allegations.

Maintaining that the matter was in early stages of examination, the market regulator said, "SEBI is strongly and adequately empowered to put in place regulatory frameworks for effecting stable operations and development of the securities markets."