SC’s Hindenburg ruling: the reason why Adani Group’s shares are up 16% today; Important Information

<p>In early trading on Wednesday, shares of the Adani group, which includes Adani Enterprises Ltd., Adani Total Gas Ltd., Adani Green Energy Ltd., Adani Ports & Special Economic Zone Ltd. (Adani Ports), Adani Wilmar Ltd., and Adani Power Ltd., rose to 16 percent.</p>
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<p>The spike in Adani Group shares coincided with an important ruling from the Supreme Court on a series of appeals requesting a court-monitored probe into claims made against the Adani Group by US-based short-selling company Hindenburg Research.</p>
<p>The market capitalization of the company has surpassed Rs 15 lakh billion.</p>
<p>Supreme Court Decision</p>
<p>The US-based short seller Hindenburg published a report containing charges against the Adani Group of businesses. On Wednesday, the Supreme Court affirmed the market regulator SEBI’s inquiry into the claims, stating that the court’s authority to intervene in SEBI’s regulatory affairs is “limited.”</p>
<p>The court declared that “SEBI must carry out the investigation to its logical end” and that the regulatory body had “not made out any ground for transfer of probe.”</p>
<p>“Out of 22 cases, SEBI has concluded its inquiry in 20 of them. We order SEBI to conclude the probe in the other two instances, ideally in three months, based on the Solicitor General’s promise,” the court said.</p>
<p>“No valid grounds were raised to direct SEBI to revoke its amendments on FPI (Foreign Portfolio Investments) and LODR (Listing of Obligations and Disclosure Requirements) regulations,” a bench chaired by Chief Justice of India D Y Chandrachud said.</p>
<p>Ever since the publication of the Hindenburg report on January 24th of last year, Adani stocks have had a volatile market. The overall market capitalization of all ten Adani equities dropped to less than half at one point in the previous year, but it progressively increased after a wave of encouraging announcements, including an investment from white knight GQG Partners.</p>
<p>In response to Public Interest Litigations (PILs) raised after the Hindenburg report, the top court established a six-member team chaired by retired Supreme Court judge Justice AM Sapre. The group submitted a report in May stating that it was unable to determine if Sebi had engaged in any regulatory failings.</p>
<p>August saw the submission of Sebi’s investigative report to the court on the accusations brought against the group.</p>