Giving 6 more months to SEBI to complete Adani probe may create perception of burying issue: Cong

Granting six more months to the Securities and Exchange Board of India (SEBI) to complete the Adani probe may create the perception that the investigation is not being seriously pursued but being “buried”, said the Congress on Monday (May 1).

Market regulator SEBI has moved the Supreme Court seeking the six-month extension to complete its investigation into the alleged stock price manipulation by the Adani group.

Congress general secretary (in-charge, communications) Jairam Ramesh said a joint parliamentary committee (JPC) probe is needed to fully investigate the Adani issue, but a speedy SEBI investigation is also required to get to the bottom of the “very serious allegations”.

Also read: SEBI seeks SC extension for Adani-Hindenburg probe

The top court had on March 2 asked the SEBI to probe the matter within two months and also set up a panel to look into the protection of Indian investors, after a damning report by a US short-seller wiped out more than US₹140 billion of the conglomerate’s market value.

Tagging a media report on the SEBI’s plea, Ramesh said, “SEBI has found many irregularities worthy of investigation in the Adani Mega Scam, and we urge it to pursue each lead to its logical conclusion.”

Also watch: How SC ruling on Adani probe will help strengthen SEBI’s structure

“But a long six-month extension risks the perception that the investigation is not being vigorously and seriously pursued but is being buried, as happened with at least two previous SEBI investigations into the Adani Group,” he said.

Attacking Prime Minister Narendra Modi, he further added, “India needs a JPC to fully investigate ‘Modani’, but it also needs a speedy SEBI investigation to get to the bottom of the very serious allegations.”

In an application moved before the court, the SEBI has submitted it would take six more months to ascertain possible violations related to misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions.