NEW DELHI: Markets regulator Sebi on Monday told the Supreme Court that it is comprehensively probing the Hindenburg Research report allegations versus Adani Group business, as also movement of share rates pre- and post-publication of the report, utilizing its powers under 3 policies and standards governing offshore acquired instruments (ODIs) and short-selling.
In a note sent by lawyer general Tushar Mehta to a bench led by CJI DY Chandrachud, the regulator said, Sebi is already asking into both, the claims made in the Hindenburg report along with the marketplace activity right away preceding and after the publication of the report, to identify offenses of Sebi policies.
As the matter is in early stages of assessment, it may not be proper to list details about the ongoing procedures at this phase, it said.In concept opposing the evaluation of the existing market regulatory framework, Sebi stated the PILs in the SC are on the price changes of shares of a single group of companies, which had no substantial impact at market-wide level or at system-wide level to require a system-level evaluation of regulatory structures in operation .
The entity-level problems that have actually developed have had a significant impact at the entity level and warrant comprehensive assessment by the regulator, which has actually currently been actioned, the Sebi said.It discussed both, the minimal impact of Adani Group company shares on stock exchange and the method operandi of short-sellers like Hindenburg.
While shares of the (Adani) group have seen considerable decreases in costs on account of offering pressure, the wider Indian market has actually revealed complete resilience.
The combined weight of the (Adani) group business in sensex is no and in Nifty is below 1%, Sebi said.It stated short-sellers like Hindenburg, a US-based business, research on companies that they believe have governance and/or financial issues.