A Supreme Court-appointed panel of experts has given a clean chit to the Adani Group
A Supreme Court-appointed panel of experts examining India's regulatory mechanism in an investigation linked to the Hindenburg allegations has given a clean chit to the Adani Group and has said it appears there was no regulatory failure on the part of market regulator SEBI.
The experts' committee comprising domain experts has also said there was no price manipulation on the part of the Adani Group and that the conglomerate had taken necessary steps to comfort retail investors. The mitigating measures taken by the group had helped in building confidence in the stock and the stocks are stable now, the panel said.
Many experts have said the report vindicates the Adani Group's sincere efforts in boosting investor confidence by 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.
Excerpts:
"The report shows no wrongdoing by the Adani Group. I am happy to note the Adani Group has come out unscathed in this report. 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," senior lawyer Mukul Rohatgi said.
"The stock price of Adani Group firms increased post-2021, primarily from March 2021 onwards. That was the time when the post-Covid budget was presented and the Indian economy changed and started to invest far more in infrastructure. I interpreted Adani to be a beneficiary as an infrastructure enterprise. I feel vindicated by the report that has been submitted to the Supreme Court, where the panel of experts clearly says that they cannot find any evidence to suggest that there was any fraud involved... By looking at the evidence, the panel did not find any convincing evidence of fraud or manipulation," former Chief Economic Advisor Krishnamurthy Subramanian said.
"For the Adani Group, it's a very happy day. Essentially, they have been cleared of any wrong doing," said Raian Karanjawala, senior Supreme Court lawyer.
"The report very clearly says nothing wrong has been found as far as the remit of the committee is there... Almost everything has been cleared and it is clear no violation has been found," JN Gupta, ex executive director of Securities and Exchange Board of India (SEBI), told NDTV.
"From a market point of view, there is no issue... You can't control volatility in the market," Sameer Arora, founder and fund manager at Helios Capita, told NDTV.