SC sets up expert committee to investigate Adani Group stock crash following Hindenburg report

Delhi (India), March 2, 2023: The Supreme Court has appointed a six-member expert committee, headed by a former judge of the apex court, Justice AM Sapre, to suggest measures to protect the interests of investors following the Hindenburg Research report on the Adani Group.

The move came in response to four PILs filed before the court, including those by advocates ML Sharma and Vishal Tiwari, Madhya Pradesh Congress leader Jaya Thakur, and Manish Kumar, seeking an investigation into the report’s allegations of fraudulent transactions and share price manipulation by the Adani Group.

The bench, comprising Chief Justice of India DY Chandrachud, Justice PS Narasimha, and Justice JB Pardiwala, also directed the Securities and Exchange Board of India (SEBI) to investigate if there was any violation of SEBI rules and existing laws. SEBI was asked to submit its report within two months.

The expert committee members include OP Bhat, Justice (Retd) JP Devdutt, Nandan Nilakeni, KV Kamath, and Somasekharan Senderasan. The committee has been given two months to submit its report in a sealed cover to the Supreme Court.

The apex court had refused to accept the names suggested by the government for the expert committee, saying it would select the experts on its own to ensure transparency. The court also clarified that it would not appoint a sitting judge to the panel to examine the issue.

The Adani Group had dismissed the Hindenburg Research report’s allegations, stating that it was complying with all laws and disclosure requirements. Following the report’s release, the group’s stocks plummeted on the stock market. SEBI had informed the court that it was investigating the allegations made by Hindenburg Research and monitoring the share price movements of the Adani Group.