Plea for six months is to carry out justice, not a delay tactic: SEBI tells SC

The probe comes after U.S.-based short-seller Hindenburg Research had, in January, raised several governance concerns around billionaire Gautam Adani’s group

The Securities Exchange Board of India (SEBI) on Monday in the Supreme Court said its request for a “minimum” of six more months to inquire into Hindenburg Research’s allegations of fraud against the Adani Group is to ensure “carriage of justice”.

The case came up before a Bench led by Chief Justice of India D.Y. Chandrachud, but was adjourned as the court had to reassemble for a Special Bench hearing.

The market regulator also denied submissions made by petitioners that SEBI had been investigating Adani since 2016. In a fresh affidavit, SEBI said its investigation pertained to the issuance of Global Depository Receipts (GDRs) by 51 Indian listed companies. These 51 did not include any company attached to the Adani Group.

SEBI was responding to submissions made in court in the previous hearing that the request for six months’ time was a ploy to delay its decision on the veracity of the allegations against Adani. The court had admonished that SEBI ought to conduct its probe with “some alacrity”.

Advocate Prashant Bhushan had further referred to a SEBI investigation dating back to 2016, and accused SEBI of trying a “delaying tactic” on the court.

“The allegation that Securities and Exchange Board of India has been investigating Adani since 2016 is factually baseless. The reliance sought to be placed on the investigation pertaining to GDRs is wholly misplaced,” the affidavit said.

SEBI argued that its plea for extension of time by six months was well-founded.