The Supreme Court has refused to interfere in the SEBI investigation on the allegations of Hindenburg Research. A bench of three judges has given its verdict in the case related to Hindenburg Research's allegations against Adani Group. The court had handed over the investigation of 22 cases to SEBI, of which two are still pending. The court has directed SEBI to complete the pending investigation within three months.

In a major relief to the Adani Group, the Supreme Court on Wednesday said that it cannot come under the purview of the regulatory regime, and the Hindenburg report or anything like that cannot be the basis for ordering a separate investigation. The court said that SEBI will proceed and continue its investigation as per law. The top court said that there is no basis to prove that SEBI was lax in taking action.

Furthermore, the court said that at present there is no ground to transfer the case to the CBI. The decision further said that the government and SEBI will investigate the allegations of violation of law, if any, made by Hindenburg Aarey on short-selling, and action will be taken in the matter as per law.

This decision was given by a three-judge bench of Chief Justice of India Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Mishra. The Chief Justice said there is no valid ground to direct SEBI to quash its amendments to the FPI and LODR regulations. SEBI has completed investigations in 20 out of 22 cases. Keeping in view the assurances of the Solicitor General, we direct SEBI to complete the investigation in the other two cases within 3 months.

Earlier, Adani Group shares rose by up to 10% on Wednesday in anticipation of a favorable decision from the Supreme Court in the Hindenburg case. Among the group of 10 stocks, Adani Energy Solutions rose the most by 10%, while Adani Total Gas was seen trading up 8% and NDTV shares were up 7%. Shares of Adani Green Energy, Adani Wilmar, Adani Enterprises, and Adani Power were seen trading with a gain of 5-6. Shares of Ahmedabad-based group flagship company Adani Ports gained 3%.

The Hindenburg report claims that billionaire Gautam Adani has committed the 'biggest fraud in corporate history'. While hearing several petitions last month, the top court had said that whatever has been said in the Hindenburg Report cannot be considered completely correct.

Case: Vishal Tiwari vs Union of India & Ors,

Writ Petition (C) No. 162 of 2023.

Click to read/download judgment.