SC on Adani row: Supreme Court on Friday sought SEBI's response by Monday (February 13) on petitions related to the Hindenburg report that created huge trouble in the Indian share market following the collapse of Adani Group's shares.
The top court asked the regulator body (SEBI) to apprise the court of how to ensure that investors are protected in the future and show the court what is the existing structure and how to strengthen the regulatory framework.
The apex court said the SEBI's response contains the existing regulatory framework and the need for putting into place a robust mechanism to protect investors.
The plea also demanded a court-monitored probe, under the leadership of a retired apex court judge, into the report which has made a slew of allegations against the Adani Group. Advocate Vishal Tiwari filed the plea, mentioning the matter for urgent listing before Chief Justice DY Chandrachud-led bench.
In his petition, Tiwari called for an urgent hearing, claiming the matter has "tarnished the image of the country." He also told the bench that a separate plea filed on the issue is scheduled to be listed for hearing on February 10.
Last week, another PIL was filed in the apex court by advocate ML Sharma seeking prosecution of short seller Nathan Anderson of US-based firm Hindenburg Research and his associates in India and the US for allegedly exploiting innocent investors and the "artificial crashing" of Adani Group's stock value in the market.
Moody's cuts rating outlook on 4 Adani companies
Moody's Investor Service on Friday revised downwards the rating outlook on four Adani Group companies to negative from stable after a significant and rapid decline in market value following a report by US-based short seller Hindenburg Research.
In a statement, Moody's said the rating outlook for Adani Green Energy Ltd, Adani Green Energy Restricted Group, Adani Transmission Step-One Ltd and Adani Electricity Mumbai Ltd has been changed to negative from stable.
"These rating actions follow the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a report from a short-seller highlighting governance concerns in the Group," it said.
About Adani row
It should be mentioned here that the Adani Group equities have suffered on the stock exchanges after Hindenburg Research levelled a slew of accusations against the corporate behemoth, including illegal transactions and share-price manipulation. However, the Adani Group has denied the accusations, claiming that it abides by all legal and disclosure obligations.
Meanwhile, both Houses of the parliament have witnessed uproar over the last few days as Opposition parties have demanded sought a Joint Parliament Committee (JPC) or a Supreme Court-monitored investigation into the alleged "economic scam" allegations by a US-based short seller against the Adani Group.
