On August 25, market regulator Sebi summitted its status report on the investigation into the allegations made by short-seller Hindenburg Research. 
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On August 25, market regulator Sebi summitted its status report on the investigation into the allegations made by short-seller Hindenburg Research. The Supreme Court has postponed the hearing in the Adani-Hindenburg case regarding the status report submitted by capital markets watchdog Securities and Exchange Board of India (Sebi). The Chief Justice of India-led constitution bench will continue hearing pleas challenging the abrogation of Article 370.
On August 25, Sebi submitted its status report on the investigation into the allegations made by short-seller Hindenburg Research in its January report against the port-to-energy conglomerate.
Initially, Sebi was asked to submit its investigation report by August 14. However, the capital markets regulator asked for a 15-day extension and submitted its status report on August 25.
The content of the Sebi report has not been made public so far. However various reports said that Sebi's probe document would shed light on the progress of the extensive probe, which encompasses a total of 24 investigations related to various aspects of the Adani conglomerate's activities.
Of these 24 investigations, a substantial 22 have already reached their conclusion, resulting in the issuance of final investigation reports. Additionally, one interim investigation report has been prepared as part of the ongoing scrutiny of Adani Group's operations.
Sebi informed the apex court that it was still awaiting information from five tax havens on actual owners behind foreign investors investing in the conglomerate, PTI reported.
The course of action regarding the interim report remains contingent on receiving vital information from overseas regulators. Sebi has said that it will finalise its actions once this crucial overseas data becomes available.
During the initial phase of the investigation by Sebi, the focus was on 13 international entities associated with Adani's enterprises. Additionally, inquiries have been made to five nations concerning Foreign Portfolio Investors (FPIs).
One of the interim reports highlighted that 13 overseas entities were categorised as public shareholders of Adani Group Companies. Sebi said it will take appropriate action based on the outcome of its investigation, India Today reported.
Sebi has said that as many of these entities are situated in tax havens, establishing the economic interests of shareholders among the 12 Foreign Portfolio Investors (FPIs), it remains a challenge in the probe.
"As many of the entities linked to these foreign investors are located in tax haven jurisdictions, establishing the economic interest shareholders of the 12 FPIs remains a challenge," SEBI said adding efforts are still being made to gather details from five foreign jurisdictions pertaining to the actual owners of these investors.
Pending this, the probe report is interim, it said.
Domestic investors and FPIs/ FIIs registered with Sebi are allowed to trade in derivatives — instruments that allow investors to hedge the market risks by taking short positions.
Sebi too allows regulated short selling and believes that restrictions may distort efficient price discovery, provide promoters unfettered freedom to manipulate prices and on the contrary, favour manipulators.
FPIs are a component of the non-promoters/public shareholders' grouping in listed companies. According to Sebi, listed companies have to maintain a minimum public shareholding of at least 25 per cent.
SEBI also said an interim report has been approved by the competent authority with respect to trading in Adani group stocks in pre and post-release of the Hindenburg report.
"Information from external agencies/entities actively pursued and awaited," it said adding this interim report was approved by the competent authority on August 24.
Sebi was probing allegations made by US-based Hindenburg Research in January this year, wherein it accused the Adani Group of stock manipulation, fraudulent transactions and other financial misdeeds.
However, the Gautam Adani-led conglomerate denied allegations and wrongdoings.
On January 29, the Adani Group gave a detailed response to the Hindenburg report, refuting the allegations and stating that most of the observations relate to matters that have been duly disclosed by the conglomerate in the past.
In his address to the shareholders, Gautam Adani highlighted the recent release of the expert committee's report, appointed by the Supreme Court. Mentioning the report, Adani said that the expert committee found no regulatory failure on the part of the Adani Group.
Shares of Adani Enterprises Ltd were trading at Rs 2,509.70 on BSE, up 1.53 per cent. The stock gained 2.55 per cent to hit a high of Rs 2,535 on Tuesday. It closed at Rs 2,471.85 on Monday.
Adani Ports & SEZ was trading at Rs 818.70, up 1.42 per cent. Adani Power Ltd was trading at Rs 331.35, up 2.97 per cent. Adani Energy Solutions Ltd was down by 0.16 per cent and was trading at Rs 863.60.
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