The Securities and Exchange Board of India (SEBI) has concluded its final report on charges made against the Adani Group by Hindenburg Research, a US-based entity. The claims were centred on alleged group wrongdoing.
According to sources familiar with the case, SEBI is expected to give the entire report to the Supreme Court in the early part of this week.
The investigation's main goal is to determine if the Adani Group manipulated share prices by exploiting loopholes in the minimum public shareholding (MPS) requirements.
The probe will also look into whether the group failed to disclose transactions with connected parties. While the specific conclusions are unknown, sources say the investigation may not show any substantial negative findings in relation to MPS standards.
Nonetheless, it is expected that the report would include facts relating to transactions involving linked parties.
It is worth noting that the Supreme Court had previously set an August 14 deadline for SEBI to complete its inquiry and submit its findings. The next hearing in this case is scheduled for August 29.
The claims about related-party transactions and adherence to MPS guidelines were crucial to Hindenburg's January report.
The publishing of this report has a substantial influence on the market capitalization of publicly traded Adani Group entities.
Due to the complexities of the international transactions involved, the SEBI inquiry experienced challenges while scrutinising the MPS-related issues.
International jurisdictions cooperated only sporadically in exchanging information about foreign portfolio investors (FPIs) that own Adani Group stock.
Given the complex ownership structures of several foreign organisations owning Adani stocks, the examination sought to discover whether some public shareholders were acting as proxies for the promoters.
Meanwhile, on a recent Monday, the shares of all companies in the Adani Group fell significantly.
The resignation of Deloitte as Adani Ports & SEZ's auditor caused this. According to reports, the resignation was the result of disagreements between Deloitte and management, particularly on some transactions detailed in the Hindenburg report.
To summarise, SEBI's final report on the claims against the Adani Group is about to be submitted to the Supreme Court.
While the probe is unlikely to unearth serious violations of MPS standards, it is expected to shed light on related-party transactions.
This event comes after a rocky period for the Adani Group, with the Hindenburg report generating market volatility and Deloitte's subsequent resignation exacerbating concerns.