Syllabus: GS-II
Subject: Governance
Topic: Statutory, Regulatory and various Quasi-judicial Bodies.
Issue: SEBI.
Context: Supreme Court judgement on petitions to transfer investigations related to Adani from SEBI to SIT.
Synopsis:
- The Adani Group, facing allegations from U.S. short-seller Hindenburg Research, has been relieved by the Supreme Court, ruling out the need for additional investigation.
- Hindenburg accused Adani of improper business dealings and tax haven use, causing a $150 billion selloff, but Adani denied the allegations.
- Adani’s shares, though still below pre-allegation levels, have recovered partially, thanks to investor confidence and strategic partnerships.
- The Securities and Exchange Board of India (SEBI) is instructed by the court to conclude its investigation within three months.
- Gautam Adani views the ruling as a victory for truth, while analysts predict increased confidence for global investors in Adani Group shares.
| Hindenburg Research :·         Founded in 2017 by Nathan Anderson. It is a forensic financial research firm that analyses equity, credit and derivatives.
·         It has a track record of finding corporate wrongdoings and placing bets against the companies.  WHAT DID HINDENBURG AND ADANI SAY? ·         Hindenburg disclosed last year it held short positions in Adani companies through U.S.-traded bonds and non-Indian-traded           derivatives. ·         It released a report that alleged Adani improperly used tax havens and also flagged concerns about high debt levels at the               company. SEBI (Securities and Exchange Board of India) •    constituted as a non-statutory body in 1988. •    established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 •    Objective: to protect the interests of investors in securities and to promote the development of, and to regulate the securities market •    SEBI has three powers rolled into one body:
|
