Is SEBI now trying to exonerate Adani Group, asks Congress

The Congress on Thursday wondered if SEBI was trying to exonerate the Adani Group by asking for details of financial institutions owning certain foreign funds and whether the market regulator can enforce this now.

Congress chief spokesperson Jairam Ramesh, quoting a media report, also asked if the move was a belated PR exercise to say “we tried but failed…”. He also tweeted as to how the Securities and Exchange Board of India (SEBI) would complete its investigation into the Adani issue before August 14 deadline fixed by the Supreme Court.

Also read: Adani stocks rally as SC-appointed panel finds no evidence in price manipulation

The apex court recently granted the SEBI time till August 14 to complete its investigation into the allegations of stock price manipulation by the Adani Group. It also asked the market regulator to place on record an updated status report of the probe.

Adani chronology

Ramesh said: “Zara Chronology Samjhiye: First, SEBI suddenly loosens ownership regulations for Foreign Portfolio Investors so as to make them opaque. Then, the Adani Group takes full advantage of this opacity tailor-made for it by its Patron Minister. “Then, the Modani Saga gets unravelled. Congress and other parties hammer away at need for JPC. Modi government instead settles for Supreme Court expert committee.”

The Congress has been seeking a joint parliamentary committee (JPC) probe into the Adani issue. “The SC expert committee holds SEBI accountable for making ownership regulations non-transparent. So, SEBI in response to Congress party’s persistence and expert committees finding gets into damage control mode, asking for detail of financial institutions behind certain funds,” he alleged.

Also read: Suspicious trading by 6 entities in Adani shares before Hindenburg report: SC panel

The Congress leader asked: “Whether SEBI can enforce this now without getting entangled in court cases. Is it a belated PR exercise to say later — we tried but failed, what can we do?”

Questions for SEBI

“And if the information is required by September, how is it expected to arrive before the Supreme Court’s August 14 deadline to SEBI? Or is this yet another token gesture at the end of which Modani gets exonerated and legitimised?”

The Congress has been alleging that the Adani group has indulged in “financial malpractices” as reported by US-based short seller Hindenburg Research, leading to crash of Adani group shares. The Adani group denies all the allegations.

(With agency inputs)