Highlighting the complexities of transactions, Securities and Exchange Board of India (SEBI) on Monday sought more time to probe on the Adani-Hindenburg issue. Additional reasons was slated by the SEBI to grant more time.
While hearing an application filed by SEBI to grant extension of six months to complete the probe, the SC bench indicated that it could not allow more than three months. A bench comprising Chief Justice D.Y. Chandrachud and Justices P.S. Narasimha and J.B. Pardiwala.
"In respect to the investigation/examination relating to 12 transactions referred to in the Hindenburg Report, prima facie it is noted that these transactions are highly complex and have many sub-transactions across numerous jurisdictions and a rigorous investigation of these transactions would require collation of data/information from various sources including bank statements form multiple domestic as well as international banks," said the affidavit.
Financial statements of onshore and offshore entities involved in the transactions and contracts and agreements, if any, entered between entities along with other supporting documents also need to be investigated, added the affidavit.
Meanwhile, in its reply to the Supreme Court, the regulator said that it has not probed Adani company since 2016. "The allegation that SEBI is investigating Adani since 2016 is factually baseless. The reliance sought to be placed on the investigation pertaining to Global Depository Receipts is wholly misplaced," the affidavit stated.
Earlier the petitioner had argued that more time should not be give for the probe as the regulator has been investigating Adani since 2016.
"At least 15 months is actually needed, but the SEBI will make best possible efforts to complete the investigation in six months time," said Solicitor-General of India Tushar Mehta appearing for the regulatory body last week.
The US-based Hindenburg published its report in January accusing Adani group of stock manipulations and accounting fraud scheme over the course of decades.
