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Adani-Hindenburg: The Securities and Exchange Board of India (SEBI) may impose fines on the Adani group in the Hindenburg controversy. News agency Reuters quoted two sources as saying that Sebi’s probe into the Adani group has uncovered several regulatory violations. These rules relate to the limits of disclosure and holding of offshore funds by listed entities. Now this matter is going to be heard in the Supreme Court on Tuesday.
How much will be the penalty: Sources said the violation of the rules is technical in nature and the penalty will not exceed monetary penalty. According to the source, holding of offshore funds in Adani’s companies was not as per rules. Fines can go up to a maximum of 10 million rupees ($121,000) for each violation by each entity, the sources said. However, there are currently no plans to make the SEBI report public.
What was the case: Let us tell you that last January, American short seller firm Hindenburg made many serious allegations against Adani Group. After Hindenburg’s allegations, the shares of the Adani group took a big hit and Gautam Adani’s personal wealth also declined. The matter reached the Supreme Court amidst the deteriorating environment. The Supreme Court ordered SEBI to investigate the allegations against the Adani Group. Earlier this investigation was asked to be completed in 2 months but later the period was extended by another 3 months.
Last Friday, Sebi told the Supreme Court that it has almost completed its probe into the Adani group’s dealings. Sebi said it has investigated 13 instances of related party transactions.