SC-appointed expert panel gives relief to Adani group, says no regulatory failure found
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New Delhi: In a significant development, an expert committee appointed by the Supreme Court has submitted its report, stating that it could not conclude if there has been any regulatory failure concerning the allegations of stock price manipulation against the Adani Group. The committee was established following allegations of fraud, market manipulation, and misuse of offshore entities made by US short-seller Hindenburg Research.
The committee's report highlights several key points that emerged from its thorough investigation. Firstly, it found no discernible pattern of artificial trading or wash trades involving the same parties multiple times. Additionally, there was no coherent pattern of abusive trading identified during the investigation.
Furthermore, the committee's report stated that no violations were found in relation to the Minimum Public Shareholding and investments from related parties. The regulatory framework regarding Minimum Public Shareholding was found to be lacking, indicating no regulatory failure in this regard.
However, it is important to note that the expert committee emphasized that the regulator was unable to substantiate its suspicions with concrete evidence that would support the prosecution of allegations of violation. The committee's report thus raises questions regarding the strength of the case against the Adani Group.
This development comes as a significant relief to the Adani Group, which has been under scrutiny since Hindenburg Research released its damning report. The allegations made in the report had raised concerns about the integrity and transparency of the stock market.
The report's findings indicate that, on the whole, the Indian stock market did not experience excessive volatility following the release of Hindenburg's report in January. While this will be viewed as positive news for the overall market stability, it also raises questions about the veracity of the initial allegations.
The Supreme Court will now review the expert committee's report and consider its implications. The court's decision regarding the allegations against the Adani Group will be eagerly awaited, as it will have significant implications for the company and the broader business community.
It remains to be seen how this report and subsequent court proceedings will impact the reputation and future operations of the Adani Group, as well as the overall perception of regulatory oversight in India's financial markets.
