Madhya Pradesh Congress leader Dr. Jaya Thakur on Tuesday moved the Supreme Court seeking probe into the Adani group of companies based on basis of US-based short-seller Hindenburg Research’s Report pointing to alleged swindling of lakhs of crores of public money by billionaire Gautam Adani and his associates.

The petitioner has also sought probe into the role of the Life Insurance Corporation and the State Bank of India for allegedly investing “huge amounts of public money” in the FPO of Adani Enterprises at a rate of Rs 3,200 per share when the prevailing rate in the secondary market was around Rs 1800 per share.

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Jaya Thakur has also sought probe into the role of the Life Insurance Corporation and the State Bank of India for allegedly investing “huge amounts of public money” in the FPO of Adani Enterprises at a rate of Rs 3,200 per share when the prevailing rate in the secondary market was around Rs 1800 per share.

Stock market regulator Securities and Exchange Board of India (SEBI) has told the Supreme Court that it is inquiring into allegations made in the Hindenburg Research report as well as the market activity immediately preceding and post the publication of the report to identify any violations of its regulations.

The Securities and Exchange Board of India (SEBI) in a note to the Supreme Court relating to the Adani case has voiced its opposition to any kind of ban on short-selling of the shares.

It said short selling usually involves investors borrowing shares and selling them, expecting to buy them back later at a lower price before returning them to the lenders. They make profits on the difference between the higher sale price initially and the lower purchase price subsequently.

“Short selling is considered by some to be a desirable and an essential feature of the securities market, as it provides liquidity and also helps price corrections in overvalued stocks.

The note by SEBI is on the February 10, 20223, direction of the top court.

While expressing concern over the huge loss suffered by the investors in the stock market due to Adani fiasco, the Supreme Court is more focused on reviewing the existing regulatory mechanisms in the financial sector to ensure that they are duly strengthened and the regulatory mechanisms must be robust enough to protect Indian investors against volatility of the kind which was witnessed in respect of the shares of Adani group of companies.