SC Panel Report: SEBI Finds No Evidence Of Regulatory Failure On Adani Group's Price Manipulation

The Supreme Court panel revealed that the country's markets regulator has not found any evidence of alleged violations by the group's overseas entities, as stated in a report seen by Reuters on Friday.

However, the expert committee has highlighted the presence of evidence indicating a surge in short positions on Adani group stocks prior to the release of a report by the U.S.-based short seller Hindenburg Group. It is important to note that the report, which remains undisclosed, provides these insights.

The committee stated in the report that it was impossible to draw any conclusions about whether there had been regulatory failure with regard to price manipulation.
The panel was established by the court to look into the legal system and the accusations made against Gautam Adani, the billionaire owner of the business.

The committee's report submitted to the Supreme Court highlights the Securities and Exchange Board of India's (SEBI) suspicion regarding the ownership of Adani Group by overseas entities. The report states that the group's structure is deemed "opaque," leading to a lack of clarity regarding the ultimate chain of ownership of the 13 overseas entities under investigation.

The six-member panel conducted a comprehensive analysis of several key areas including market volatility, investor confidence, regulatory framework, investor awareness, and the investigation related to the Adani Group companies.