The Supreme Court of India also ordered the formation of an investor-protection panel amid sharp falls in the Adani group's shares.a critical Jan. 24 report by Hindenburg Research that alleged the Adani group improperly used offshore tax havens and manipulated stocks. The conglomerate has denied doing so.
SEBI had previously told the court it was investigating the allegations made in the Hindenburg report and market activity immediately preceding and following its publication. The Supreme Court asked SEBI to check "whether there has been a failure to disclose transactions with related parties" and "whether there was any manipulation of stock prices in contravention of existing laws".
The ruling was announced by a three-judge bench, headed by Chief Justice of India D. Y. Chandrachud, which heard several public-interest litigations on losses investors suffered due to the stock market rout triggered by the Hindenburg report.