NEW DELHI: SEBI told the Supreme Court on Monday that a six-month extension for a probe into the Adani Hindenburg issue is being sought for ensuring carriage of justice.
Underscoring the complexity of transactions referred, SEBI has said, “In respect of the investigation/examination relating to 12 transactions referred to in the Hindenburg Report, prima facie it is noted that these transactions are highly complex and have many sub-transactions across numerous jurisdictions and a rigorous investigation of these transactions would require collation of data/information from various sources including bank statements from multiple domestic as well as international banks, financial statements of onshore and offshore entities involved in the transactions and contracts and agreements, if any, entered between the entities along with other supporting documents. Thereafter, analysis would have to be conducted on the documents received from various sources before conclusive findings can be arrived at.”
Denying the allegation levelled by the petitioners that SEBI has been investigating Adani since 2016, the affidavit says that the investigation actually pertained to the issuance of Global Depository Receipts by 51 Indian listed companies, which did not include any listed company of Adani Group.
While proposing to grant three months to SEBI to complete the probe instead of the six months sought, CJI DY Chandrachud last week had said, “To now extend 6 months time may not be appropriate and we will extend the time for 3 months because they have a point in saying that SEBI was already investigating. We’ll place the matter around August 14. 6 months cannot be given as a minimum time. SEBI cannot take an indefinitely long period and we will give them 3 months. There has to be some alacrity in completing the investigation. Put together a team.”
SEBI also submitted that for ascertaining possible violations related to misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions in respect of the 12 suspicious transactions, given the complexity of the matter, SEBI in the normal course would take at least 15 months for completion of the investigation of these transactions, but is making all reasonable endeavours to conclude the same within six months.