A committee constituted by Supreme Court of India to oversee investigations into the Adani group said India’s markets regulator had “drawn a blank” on alleged violations by the group’s overseas entities, according to a report seen by Reuters on Friday.
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But the expert committee said that there was evidence of a build-up in short positions on Adani group stocks ahead of a report by the U.S based short seller Hindenburg Group, according to the report, which has not been made public. It was not possible to conclude whether there has been regulatory failure regarding price manipulations, the committee said in the report.
Committee said,” At this point, no violation found on MPS (Minimum Public Shareholding) compliances. At this point, no price manipulation by Adani Group found. No pattern of artificial trading or wash trades among the same parties multiple times was found. No coherent pattern of abusive trading came to light.”
Adani has taken necessary steps to comfort retail investors. Empirical data shows retail investment exposure to Adani stocks increased multifold after Jan 24, mitigating measures by the Group helped in building confidence in the stock & stocks are stable now.
Parties have affirmed on oath that FPI (Foreign portfolio investment) investments are not funded by the Adani Group. SEBI has not proved that its suspicion can be translated into a firm case.
The court formed the panel to examine the regulatory framework and allegations levelled against billionaire Gautam Adani’s conglomerate.
In January, U.S.-based short-seller Hindenburg Research raised several governance concerns around the Adani group, alleging improper use of tax havens and stock manipulation by the ports-to-energy conglomerate. The group has denied all the allegations.
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