Mukul Rohatgi said Adani Group has come out unscathed in a Supreme Court panel report
Senior lawyer Mukul Rohatgi has said the report of the Supreme Court-appointed committee to look into India's regulatory mechanism to protect investors has not found any wrongdoing on the part of the Adani Group, following the allegations by US short seller Hindenburg Research.
"The report shows no wrongdoing by the Adani Group. I am happy to note the Adani Group has come out unscathed in this report," he told reporters in Delhi today.
The Adani Group has taken necessary steps to comfort retail investors after the volatility caused by Hindenburg report, according to the report.
Later, in an interview to NDTV, Mr Rohatgi said, "As of now the report is conclusive. It is headed by no less than a retired judge of the Supreme Court and certain experts. They have examined everything, they have taken inputs from SEBI. As of today there is no material to hold that the Adani Group is lacking on any front. That is how I would describe the position today... This should calm some ruffled feathers. In fact the report goes on to say Adani has taken mitigating steps to boost investor confidence and Adani shares are stable."
"It (the report) has also found there is no violation in related party transactions. It found minimum public shareholding requirements of SEBI (Securities and Exchange Board of India) are well-maintained... The most important thing that the committee found is that the prices of Adani Group stocks are stable. They are not the prices before January 24, but wherever they are, they are stable and investors are confident. Adani Group has done a lot to ensure investor confidence," Mr Rohatgi told reporters earlier.
"There is no real reason to worry. Some people have definitely done some short selling on or around January 24. But there is no hand of the Adani Group, SEBI has clearly said in the report. There was also no regulatory failure," the senior lawyer said, referring to the date earlier this year when Hindenburg published its report.
The intense adverse impact on Adani stock prices stood mitigated with measures such as the Adani Group promoters paring down the debts raised, secured by encumbrances on their shareholding, and infusion of fresh investment into Adani stocks by buying shares worth nearly $2 billion by a private equity investor from the promoters of the Adani Group, the report said.
Mr Rohatgi said Adani Group has always maintained that Hindenburg's report was "motivated". "It is their (Hindenburg's) job. To create a crisis first, short stocks, buy cheap and sell for a high price," he said.
As per the report, SEBI has submitted that the events linked to Adani Group companies did not have any significant impact at the systematic level.
While the shares of the group have seen significant fall in prices due to selling pressure and may have dominated media attention, the markets remained largely stable and resilient, the report said.
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