Supreme Court Reserves Order on Hindenburg Report, Cautions on Evidence and SEBI’s Role

Supreme Court Reserves Order on Hindenburg Report, Cautions on Evidence and SEBI's Role

VoM News Desk | November 24, 2023 | 10:07 PM IST | Courts & Law | Follow on Google News

Supreme Court Reserves Order on Hindenburg Report, Cautions on Evidence and SEBI’s Role

Supreme Court Reserves Order on Hindenburg Report, Cautions on Evidence and SEBI’s Role

The Supreme Court has reserved its order on various aspects related to the Hindenburg report, emphasizing the need for careful consideration of facts and the role of the Securities and Exchange Board of India (SEBI) in the matter.

SEBI’s Probe and the Court’s Observation

Advocate Prashant Bhushan, representing one of the petitioners, highlighted factual revelations in the Hindenburg report. However, the Supreme Court, led by Chief Justice DY Chandrachud, remarked on the importance of not taking the report as an automatic determination of facts and has asked SEBI to investigate. The court also emphasized that the entity in question is not directly before them.

Solicitor General’s Stand and DRI Proceedings

Solicitor General Tushar Mehta criticized the reliance on random sources in affidavits submitted to the court and informed that the Directorate of Revenue Intelligence (DRI) had concluded its proceedings in 2017.

Concerns Over Allegations Against SBI and LIC

The court addressed the petitioner’s demand for an investigation against SBI and LIC, urging responsibility and cautioning against the potential consequences of such allegations.

SEBI’s Statutory Role in Stock Market Frauds

The Supreme Court noted SEBI’s role as a statutory body overseeing stock market frauds and questioned the lack of substantial material presented by the petitioner to suggest SEBI’s inaction.

Media Reports and Evidentiary Value

The petitioner’s lawyer referred to various media reports, including those by the Organized Crime and Corruption Reporting Project (OCCRP). The court questioned the evidentiary value of such reports and remained neutral on their credibility.

Growing Tendency of External Influence

SG Tushar Mehta highlighted a growing trend of stories planted outside India to influence domestic decisions, citing the OCCRP report as an example.

Supreme Court’s Approach to SEBI’s Actions

The Supreme Court indicated that it might issue additional directions for SEBI, following a thorough discussion of the matter. SEBI had earlier filed a status report, revealing that out of 24 investigations triggered by the Hindenburg report, 22 are final, and 2 are interim in nature.

Background of the Hindenburg Report and SC’s Involvement

The apex court had directed SEBI to investigate any violations of securities law by the Adani Group following the Hindenburg report. The report led to a significant market value loss for the Adani Group, prompting the court to set up an expert committee and extend SEBI’s investigation time.

The Hindenburg report, released on January 24, accused the Adani Group of stock manipulation and fraud, allegations that the Group has vehemently denied.

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