Supreme Court verdict on Adani-Hindenburg row expected on January 3

Adani-Hindenburg row: The Supreme Court is set to announce its decision on January 3 regarding petitions seeking a court-monitored investigation into the allegations made by US-based firm Hindenburg Research against the Adani group, accusing it of stock market violations.

Background of the Dispute

The case revolves around claims made in a report by Hindenburg Research, suggesting that the Adani group inflated its share prices. These allegations led to a significant decline in the share value of various Adani companies, estimated at around $100 billion.

Denial and Legal Action

The Adani Group vehemently denied the allegations, dismissing them as falsehoods and asserting compliance with all laws and disclosure requirements. The dispute prompted various petitions, alleging that changes to the Securities and Exchange Board of India Act (SEBI Act) created a shield for the Adani Group's regulatory contraventions.

Supreme Court's Involvement

The Supreme Court, headed by Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra, reserved its verdict in November 2023, addressing several aspects related to the Hindenburg report.

SEBI Investigation and Expert Committee

The apex court instructed the Securities and Exchange Board of India (SEBI) to conduct an independent investigation. Additionally, it formed an expert committee led by retired Supreme Court judge Justice AM Sapre to scrutinise the matter. In May of the previous year, the committee's report found no prima facie lapses on SEBI's part.

Court's Stance and Observations

While reserving the verdict, the Supreme Court expressed no intention to discredit SEBI, emphasising that it lacked grounds to doubt the regulator's actions. The court highlighted the need to treat the Hindenburg report cautiously, not accepting it as an indisputable account of events.

Awaiting Decision

Advocate Prashant Bhushan, representing one of the petitioners, emphasised the factual revelations in the Hindenburg report. He urged the court to assess the credibility of SEBI's investigation and consider the formation of an independent organisation or a Special Investigation Team (SIT) if necessary.

The impending Supreme Court decision will bring clarity to this high-profile dispute, influencing the perception of regulatory practices and market integrity.