(Reuters) -India’s Supreme Court on Wednesday ordered the country’s markets regulator to complete an investigation into Adani Group within three months and rejected a request for the probe to be transferred to an independent agency.
The Securities and Exchange Board of India (SEBI) has been probing the Gautam Adani-led group after U.S. short-seller Hindenburg in January 2023 alleged improper use of tax havens and stock manipulation by the group.
The conglomerate denied any wrongdoing, but the report sparked a $150 billion plunge in the group’s shares which have since staged a recovery.
The Supreme Court, which was overseeing the SEBI probe, said while it had the power to transfer an investigation from one agency to another, “The facts of this case do not warrant a transfer of investigation from SEBI.”
The court also said there was no need for it to order any changes in the country’s disclosure rules for offshore funds, rejecting a request by the public interest litigant that brought the case.
Shares of Adani Group companies were up between 6% and 18% before the Supreme Court ruling, then trimmed some gains but were up between 2% and 12% after the ruling, which was seen to signal the end of regulatory and legal risk weighing on the conglomerate.
(Reporting by Jayshree P Upadhyay and Arpan Chaturvedi; Editing by Aditya Kalra and Muralikumar Anantharaman)
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