The market regulator Securities and Exchange Board of India on Monday described as “factually baseless” the allegation that it has been investigating Adani group of companies since 2016.

In its response affidavit to a petition relating to Hindenburg report, the market regulator told the Supreme Court that investigation done earlier by SEBI pertains to the issuance of Global Depository Receipts (“GDRs”) by 51 Indian listed companies, and the same has concluded and no listed company of Adani Group was part of the 51 companies.

“Pursuant to completion of investigation, appropriate enforcement actions were taken in this matter. Hence, the allegation that the Securities and Exchange Board of India (“SEBI”) is investigating Adani since 2016 is factually baseless. … reliance sought to be placed on the investigation pertaining to GDRs is wholly misplaced,” SEBI said in a rejoinder affidavit.

SEBI has said that in the context of investigation into Minimum Public Shareholding (“MPS”) norms, SEBI has already approached eleven overseas Regulators under the Multilateral Memorandum of Understanding (“MMOU”) with the International Organization of Securities Commissions (“IOSCO”).

Various requests for information were made to these eleven Regulators. The first request to overseas Regulators was made as early as on October 6, 2020, SEBI told the top court.

Having denied that any of the Adani group’s companies were part of its 2016 investigation, the marker regulator has told the top court that its request for extension of time by six months is to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable.

As regards 12 transactions of the Adani group referred in the Hindenburg report, prima facie they are highly complex and have many sub-transactions across the numerous jurisdictions and their rigorous investigation would require collation of data/information from various sources, including bank statements from multiple domestic as well as international banks, financial statements of onshore and offshore entities involved in the transactions and contracts and agreements, if any, entered between the entities along with other supporting documents.

SEBI told the SC that analysis would have to be conducted on the documents received from various sources before conclusive findings can be arrived at.

On March 2, the top court had directed the market regulator SEBI to probe any violations of the securities law by the Adani group in the wake of the Hindenburg report, which led to a massive Wipeout of the group’s market value.

The same day, the top court had also set up an expert committee of six members headed by its former judge Justice A M Sapre. The January 24, 2023, Hindenburg report had alleged market stock manipulation and fraud by the Adani conglomerate.

The Adani Group has attacked Hindenburg as an “unethical short seller,” stating that the report by the New York-based entity was “nothing but a lie,” pointing out that the short-sellers in the security market book gains from the subsequent drop in the prices of the shares.