“We cannot grant six months now. There needs to be some alacrity in the work. Put together a team. We can list the case in August mid and have the report then,” chief justice DY Chandrachud said, disagreeing with solicitor general Tushar Mehta, who appeared for Sebi.
Mehta argued six more months was also too short, given the scope and expanse of the probe, citing longer periods taken by agencies in the US to conduct similar probes.
“Six months cannot be given as a minimum time. Sebi cannot take indefinitely long period,” the chief justice countered.
The top court bench led by the chief justice said it will pass an order on the extension sought by Sebi on Monday, after going through the sealed cover report submitted by the expert committee headed by former Supreme Court judge Abhay Manohar Sapre.
The court had in its March 2 order asked Sebi to “expeditiously conclude” the investigation within two months and file a status report by May 2. It set up a separate committee to investigate whether there was any regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in relation to the Adani Group or other companies.
Sebi submitted report on findings till now
ET reported on May 10 that the six-member Sapre committee had submitted its report to the Supreme Court two days earlier. The court said it had not examined the report yet.
The stock market watchdog said it has “crystallised a prima facie view” in some issues such as 12 transactions for possible violations, possible breaches of related-party transactions disclosures, possible corporate governance violations, possible violations of minimum public shareholding norms, and possible stock price manipulation in various stocks of Adani Group.
Sebi said it had also formed a prima facie view in respect of possible violations relating to trading in Adani Group stocks in the periods before and after the release of the Hindenburg report.
“For ascertaining possible violations related to misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions in respect of 12 suspicious transactions, given the complexity of the matter, Sebi in the ordinary course would take at least 15 months for completion of the investigation of these transactions, but is endeavouring to conclude the same in not less than six months,” the Sebi application had said.
The regulator has submitted a detailed report to the Supreme Court about its findings thus far and sought more time to investigate other issues.
In the ordinary course, it would take at least 15 months for completion of the investigation of these transactions, but, it is endeavouring to conclude the same in not less than six months,” Sebi said.
“Six months are also a compressed period and I am saying it with a degree of sincerity. I will not be promising something, which we also know is something not achievable,” Mehta said, seeking more time.
Opposing Sebi’s plea for additional time to complete the probe, counsel Prashant Bhushan, appearing for one of the petitioners, said the market regulator should have disclosed the status of the investigation conducted thus far.
“What investigations have been done so far on this matter… Hindenburg was not making these allegations for the first time,” Bhushan said, adding that Sebi could have sought this information much earlier as it was investigating some of the transactions from 2017.
The bench disagreed with Bhushan.
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