Sebi never comments on entity-specific matters, says chief on Adani-Hindenburg row

On March 2, the Supreme Court set up an expert committee after a report by US short seller Hindenburg Research on the Adani Group. 

The top court directed the market regulator to investigate whether there has been a violation of Section 19 of SEBI rules and any manipulation of stock prices.

«We never comment on entity-specific matters and on top of that, the matter is before the Supreme Court. We never comment on sub-judice matters,» said Sebi chairperson Buch.

«We will follow the advice of the Supreme Court. We are duty-bound to follow whatever the Supreme Court has said,» she added.

Further, she informed that the apex court has instructed the regulator to precisely give the update to the committee and it will be inappropriate to comment on the matter.

In January, Hindenburg report alleged stock manipulation and accounting fraud by the conglomerate. Over the past few weeks since the Hindenburg report, share prices of most companies in the Adani Group have dropped significantly, though in varying degrees.

In response to the US short seller’s report, the Adani Group had hit back, calling Hindenburg Research «an unethical short seller» and stating that the report was «nothing but a lie». 

Adani Group stocks rebounded in Wednesday’s trade after the ports-to-power conglomerate rebutted reports that it has not completed repayment of loans backed by shares worth $2.15 billion.

«Adani has completed full prepayment of margin linked share backed financing aggregating to USD 2.15 billion and all corresponding shares pledged for those facilities have been released,» the Adani group stated in a regulatory filing.

The group’s flagship entity, Adani Enterprises advanced as much as 8.75 per cent to ₹ 1,741.65 per share, while Adani Ports & Special Economic Zone added 7.25 per cent to ₹636.50 apiece on BSE.

Among other stocks, Adani Power climbed 4.98 per cent, Adani Wilmar 4.22 per cent and Adani Green Energy 4.15 per cent on the BSE.

The stock of NDTV surged 3.73 per cent, Adani Transmission went up by 2 per cent, Adani Total Gas 2 per cent, Ambuja Cements 1.94 per cent and ACC 1.92 per cent.