by Auhona Mukherjee | November 17, 2023

The Securities and Exchange Board of India (SEBI) should make its findings on the Adani-Hindenburg case public after the investigation is concluded, said Viral Acharya, a former member of the International Advisory Board of SEBI. 

“It seems like it’s taking quite a bit of time to get any public disclosure around what has happened,” said Acharya. The public should know what went down and what could have been investigated, he said. .

SEBI launched a probe into the allegations after the report by Hindenburg Research accused the Adani Group of stock manipulation through offshore tax havens. The Supreme Court later appointed a six-member expert panel to investigate if regulatory failure was to blame for this. The report had resulted in the loss of investor wealth as the Adani Group companies lost Rs. 12 lakh crore in market valuation a month after it released.

SEBI tightened disclosure norms for foreign portfolio investments (FPI) following the release of the Hindenburg report. As per the latest standard operating procedure, FPIs breaching certain investment limits will have to reveal the identities of the beneficiaries. 

Acharya raised concerns about the impact of the market regulator’s new disclosure norms. He questioned whether these norms would speed up the process of verifying the allegations against the Adani Group or would it get ‘preferential treatment.’

“Even if data are available, how do you ensure that enforcement and action are not selective?” said Acharya. “How do you ensure these large companies are not using other mechanisms to get an easy way out?”