Supreme Court to Hear Adani Group Matter Following SEBI's Investigation Report

Adani Group companies shares, including Adani Enterprises, Adani Ports and SEZ, Adani Power, Adani Green Energy, Adani Wilmar, Adani Total Gas, and Adani Energy Solutions, are in focus on Tuesday as the Supreme Court (SC) is set to hear the matter raised by Hindenburg Research. The Securities and Exchange Board of India (SEBI) submitted a status report on its investigation on Friday.

SEBI submits status report on Adani-Hindenburg probe

SEBI has informed the apex court that it is still awaiting information from five tax havens regarding the actual owners behind foreign investors who have invested in the Adani Group. According to reports, SEBI has finalized its findings in 22 out of 24 matters it was investigating. The SC hearing for this case was scheduled for August 29.

Hindenburg Research had made allegations against the Adani Group in January, accusing them of stock manipulation, fraudulent transactions, and other financial misdeeds. The Adani Group, led by Gautam Adani, denied these allegations.

SEBI was initially required to submit its investigation report on the Hindenburg allegations by August 14. However, the regulatory authority for capital markets requested a 15-day extension and provided its progress update on Friday, August 25th.

The contents of SEBI's report are not public. As per the report, a single market participant took a significant derivatives position in Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, just days before SEBI submitted its status report to the Supreme Court on August 25. Such a move indicates anticipation of a sharp price movement in the stock. Typically, when such a large position is taken, the stock may be placed under a futures and options (F&O) ban, which restricts fresh positions and allows only existing positions to be squared off until the ban is lifted.

Ahead of the Supreme Court hearing, Adani Group shares were trading mostly higher during the early trading session. Adani Enterprises, the flagship company, saw a gain of about 2%, commanding a total market capitalization of more than ₹2.85 lakh crore. Adani Ports and Special Economic Zone also gained more than 1% with a total market cap of more than ₹1.75 lakh crore.

Adani Power, Adani Energy Solutions, and Adani Total Gas experienced gains during the initial session. Adani Wilmar and Adani Green Energy showed marginal increases at the opening. Additionally, entities acquired by the Adani Group, including Ambuja Cement, ACC, and New Delhi Television (NDTV) from the media space, also saw gains during the early session.

In his address to shareholders, Gautam Adani highlighted the recent release of the expert committee's report, appointed by the Supreme Court. Drawing from this report, Adani asserted that the expert committee found no regulatory failure on the part of the Adani Group.

In summary, the Adani Group matter is scheduled for a Supreme Court hearing following SEBI's investigation report. The allegations made by Hindenburg Research earlier this year have led to increased scrutiny of Adani Group companies. Share prices of these companies experienced various movements during the early trading session, and the next hearing date for the case is expected to be clarified later. Gautam Adani, in a shareholder address, emphasized the findings of an expert committee report that absolved the group of regulatory failure.