Adani-Hindenberg Saga: SEBI has defended its decision to change the reporting rules for offshore funds i.e. foreign funds in 2019 in a new filing submitted to the court in the Hindenburg report case against the Adani group. SEBI said that due to the change in the rules, it has not become difficult to find out the rightful beneficiary of offshore funds, as said by the committee constituted by the Supreme Court in its report.
In May 2023, the Supreme Court-constituted committee submitted its report to the court saying that due to changes in the reporting rules for offshore funds, it became difficult for SEBI to detect offshore funds investing in shares of Adani group companies. Is. At the same time, SEBI told the court that it would not be appropriate to set any kind of deadline for starting or completing the investigation or for settlement proceedings.
After the Hindenburg report on the Adani group came to the fore, the committee constituted by the Supreme Court said in its recommendations that the time from the beginning of the investigation to the completion of the investigation, the initiation of proceedings, the disposal of the case and the completion of proceedings Limits should be set.
On this suggestion of the committee, SEBI gave its opinion before the Supreme Court and said that it is not right to set a time limit for any investigation. Because the board of SEBI has the right to appoint an investigative agency only after making a prima facie opinion. The decision of the SEBI board to appoint an investigative agency depends on several factors. In which it is important that when the violation was first found or the matter of violation has come to the notice of SEBI. Along with this, all the information is analyzed and the evidence available on record is scrutinised.
On 2 March 2023, the Supreme Court to investigate the steep fall in Adani Group’s shares after the Hindenburg Research report came out and review the existing regulatory mechanism of SEBI to protect the interests of small investors, retired. An expert committee was formed under the leadership of Judge AM Sapre. The committee included former ICICI Bank CEO KV Kamath, Infosys co-founder Nandan Nilekani, former SBI chairman OP Bhatt, Justice JP Deodhar and Somashekar Sundaresan. The Supreme Court had asked this committee to submit its report in a sealed cover within two months. The committee submitted its report containing its recommendations and suggestions to the court in May.
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