New Delhi: The Supreme Court on May 15 suspended the hearing on the plea submitted by the Securities and Exchange Board of India (SEBI) to July 10, seeking six months extension to inspect the allegations of the Adani Group’s stock manipulation.
The hearing on Sebi’s pleas and other PILs could not occur on May 16 due to the scarcity of time as the Monday hearing was scheduled for certain other matters.
SEBI’s Plea
Last week, a bench comprising Cheif Justice DY Chandrachud and Justice P S Narasimha and Justice J B Pardiwala noticed granting a three-month extension period to Sebi instead of six months to probe into allegations of stock price manipulation and failure in regulatory disclosure made by US-based short seller Hindenburg Research.
While Sebi has already filed a rejoinder affidavit adding reasons to ask for more time to complete the probe on the issue.
“The application for extension of time filed by Sebi is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable,” it said.
On the other hand, Sebi was supposed to file the report on the issue by May 2. Still, the market regulator on April 29 submitted a fresh application seeking an extension of six months in order to investigate thoroughly the allegations of stock manipulation and financial fraud against the Adani group.
On April 29, The Sebi filed its request with the SC and called attention to complex transactions involving listed, unlisted, and offshore entities that need deeper investigations.
“To ascertain possible violations related to misrepresentation of financials, circumvention of Regulations, and investigate the fraudulent nature of transactions mentioned in the Hindenburg report, it would take in the normal course at least 15 months,” said Sebi in its application.
