SEBI’S SCRUTINY ON ADANI GROUP TRANSACTIONS

  • India’s market regulator has increased scrutiny of deals by the Adani Group over the past year and will study a report by short-seller Hindenburg Research to add to its own ongoing initial investigation into the group’s foreign portfolio investors, as per two sources aware of the matter.
  • On Wednesday, the U.S. firm said it held short positions in the Indian group, accusing it of improper use of offshore tax havens and flagging concerns about high debt, leading to a massive sell-off of India-listed shares of the conglomerate’s companies.
  • “SEBI has been increasingly examining all the transactions that Adani Group has been undertaking in the listed space,” said the first of the two sources, who declined to be identified as the matter is confidential. SEBI has been increasingly asking for disclosures that it ordinarily does not.
  • Adani earlier this week dismissed the Hindenburg report as baseless. SEBI spokespersons did not offer any comments saying they do not discuss ongoing investigations.
  • In Adani’s acquisition of Holcim’s stake in Ambuja Cements and ACC, SEBI examined the offshore special purpose vehicle used for the deal, the first source said.

Securities And Exchange Board Of India

  • Before SEBI, the regulating authority was the Controller of Capital Issues, which had authority under the Capital Issues (Control) Act of 1947.
  • The Securities and Exchange Board of India (SEBI) supplanted the office of Controller of Capital Issues. SEBI basically came into existence as a non-statutory body in 1988 by a resolution of the Government of India
  • It gained statutory significance with the passage of the 1992 Act. SEBI formed an autonomous entity of the Indian government as a result of this Act. It was established to oversee India’s securities and capital markets

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB

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