In a significant development, the Supreme Court (SC) delivered its verdict on the Adani-Hindenburg case, marking a turning point for Adani group companies. The favorable outcome saw an early boost in the shares of various Adani entities, reinforcing their market position. Let’s delve into the details of this landmark decision.
Rejecting OCCPR Report: SC’s Stance
The apex court firmly rejected the reliance on the OCCPR report and any third-party organization, emphasizing that unverified reports lack credibility as evidence. Highlighting the completion of the market regulator’s investigation into 22 out of 24 allegations, the SC directed Sebi to conclude the remaining two cases within three months.
Market Response: Adani Group’s Surge
Adani Energy Solutions Ltd, Adani Enterprises Ltd, Adani Total Gas Ltd, Adani Green Energy Ltd, Adani Ports & Special Economic Zone Ltd (Adani Ports), Adani Wilmar Ltd, and Adani Power Ltd witnessed gains of up to 10 percent. Notably, Ambuja Cements Ltd, ACC Ltd, and NDTV Ltd also experienced a surge. This collective positive momentum propelled the Adani group’s market capitalization (m-cap) beyond the Rs 15 lakh crore mark, surpassing the previous session’s Rs 14.46 lakh crore m-cap level. Despite this, it remains shy of the Rs 19.2 lakh crore market cap held by 10 listed Adani group companies on the day Hindenburg Research released its critical report last year.
Expert Committee’s Credibility: SC’s Verdict
Addressing the allegations against the members of the expert committee, the SC deemed them unsubstantiated, asserting that there is no basis to transfer the probe. The court clarified that such a transfer could only be warranted in the case of willful or deliberate rule violations. While acknowledging its authority under sections 32 and 142, the SC emphasized the need for cautious use of these powers, requiring petitioners to present compelling evidence. Notably, the court highlighted the approval of 22 final investigations and the placement of one interim report. The SC urged Sebi to draw logical conclusions in adherence to the law.
Conclusion: Adani Group’s Resilience
In conclusion, the Supreme Court’s verdict has fortified the Adani group’s position, vindicating them against the Adani-Hindenburg case. The market’s positive response underscores the resilience of Adani group companies in the face of scrutiny. As the legal proceedings unfold, the spotlight remains on Sebi’s impending decisions and the continued trajectory of the Adani group in the financial landscape.
Frequently Asked Questions (FAQ’s)
Ans: The Adani-Hindenburg case involves a set of petitions, and the Supreme Court’s verdict is pivotal as it impacts Adani group companies, influencing their market standing.
Ans: The apex court asserted that unverified reports lack credibility as proof, emphasizing the need for thorough verification before considering such reports in legal proceedings.
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