SC on Hindenburg report: The Supreme Court has formed an expert committee to look into the matter raised by the Hindenburg report  on Adani Group entities. (SC on Hindenburg report)

The committee will be composed of six members, led by former Supreme Court Judge AM Sapre. The Supreme Court has ordered SEBI to investigate if there was a violation of Section 19 of the SEBI rules, as well as whether stock prices were manipulated.

The Supreme Court was examining petitions related to the Hindenburg report, including the formation of a commission on regulatory instruments to protect investors’ interests.

On February 17, while reserving its order, the Supreme Court rejected to accept the Centre’s sealed cover request for the creation of a committee relating to regulatory procedures to protect investors in the context of the Adani-Hindenburg case, stating that it needs full openness.

At the hearing, CJI DY Chandrachud stated that they will not accept the Centre’s request of a sealed cover since they want full transparency.

Tushar Mehta, standing for the Government, provided a sealed cover note in which he stated, “Two purposes should be kept in mind, one is that the truth gets out and a holistic view is offered, and the other is that there is an unanticipated influence on the markets.”

The share prices of Adani Group firms have fallen dramatically in the last month. The conglomerate was accused of stock manipulation and fraud in the Hindenburg investigation on January 24.

The Adani Group has blasted Hindenburg as “an unethical short seller” and declared that the report from the New York-based organisation was “nothing but a falsehood”.

The group’s equities continued to fall in value, prompting its flagship company, Adani Enterprises Limited, to cancel a fully subscribed Rs 20,000 crore follow-on public offer.

In a lengthy 413-page report released on January 29, Adani Group stated that the recent Hindenburg Research report was a “calculated attack” on India, its growth story, and objectives.

“This is not only an unwarranted attack on any specific company but a “planned attack on India, the independence, integrity and quality of Indian institutions, and the growth story and aspiration of India,” it said.