Can’t give indefinite extension, submit report on Adani-Hindenburg probe by Aug 14: SC to SEBI

The apex court also directed that the copies of the report submitted by the Justice Sapre panel will be given to the parties in the meantime to enable them assist in further deliberations.

A bench headed by the Chief Justice of India, D.Y. Chandrachud told Solicitor General Tushar Mehta, representing SEBI, that the court could have given time till end of September but on August 14, “tell us, what stage you are on, give us an updated report”.

Mehta contended that six-month extension for the SEBI to complete its report was already compressed.

The bench, also comprising Justices P.S. Narasimha and J.B. Pardiwala, told Mehta: “Tell us what you have done and the court had initially granted two months and now extended it till August which makes it five months.”

The top court stressed that it cannot give an indefinite extension for completing the probe.

Advocate Prashant Bhushan submitted that in recent years and despite many complaints, the SEBI did not do anything.

The market regulator told the Supreme Court that the allegations it has been investigating the Adani Group since 2016 are “factually baseless”.

SEBI also cautioned that “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”.

“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.

“In the context of investigation into Minimum Public Shareholding (MPS) norms, SEBI has already approached eleven overseas Regulators under the Multilateral Memorandum of Understanding (MMOU) with the International Organization of Securities Commissions (IOSCO). Various requests for information were made to these Regulators. The first request to overseas Regulators was made as early as on October 6, 2020,” SEBI added.

On May 12, the Supreme Court had indicated that it may grant three months more to SEBI to complete its probe into the controversy surrounding the Hindenburg Research report on the Adani Group.