"Conclusions predictable": Congress on SC-appointed committee report on Adani-Hindenburg case

New Delhi: Congress leader Jairam Ramesh said the conclusions drawn in the Supreme Court-appointed expert committee report to look into the Adani-Hindenburg row were in what he termed as predictable.
"The Congress has all along been saying that the Expert Committee appointed by the Supreme Court has extremely limited terms of reference and will simply be unable(and perhaps unwilling too) to unravel the Modani scam in all its complexity," Jairam Ramesh tweeted hours after the SC-appointed committee report was made public. "We wish to say nothing more on the Committee's report given the eminence of its members, except to say its conclusions were predictable and with all its limitations to spin the Committee's report as having given a clean chit to the Adani Group is wholly bogus."
Coming to the expert committee report, it said it would not be possible for it to conclude that there has been a regulatory failure around the allegation of price manipulation.
"At this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the Committee to conclude that there has been a regulatory failure around the allegation of price manipulation," the expert committee said in its report submitted to the apex court earlier this month.
The committee said its remit was not to examine whether the price rise was justified and it was to ascertain if there was a regulatory failure.
The committee noted that it is apparent that SEBI was actively engaged with developments and price movements in the market.
It also said that empirical data showed that retail investors' exposure in the group has increased after January 24, 2023, when the Hindenburg report came out.
The committee also concluded, based on empirical evidence, that the Indian market as a whole was not "unduly volatile".
"The volatility in the Adani stocks was indeed high, which is attributable to the publication of the Hindenburg report and its consequences," the committee said.
The market has re-priced and re-assessed the Adani stocks.
"While they may not have returned to the pre-January 24, 2023 levels, they are stable at the newly re-priced level," the committee added.
On March 2, the apex court directed the capital market regulator SEBI to investigate any violations of securities law by the Adani Group in the wake of the Hindenburg report, which led to a sizable wipeout of Adani Group's market value.
On March 2, Supreme Court set up an expert committee on the issue arising from the Hindenburg Research report on Adani Group companies. The committee was headed by former apex court judge Justice AM Sapre. The top court had then asked SEBI to file a status report within two months.
SEBI had sought an extension to conclude the investigation in the report by US short-seller Hindenburg Research.
SEBI recently submitted before the Supreme Court that the application for extension of time filed by SEBI is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable.
Upon hearing SEBI's fresh application, the top court on Wednesday granted an extension of time for three months to conduct the probe.
The Hindenburg report, which came out on January 24, alleged stock manipulation and fraud, among other allegations, by the conglomerate.
The Adani Group had then termed Hindenburg as "an unethical short seller", stating that the report by the New York-based entity was "nothing but a lie". A short-seller in the securities market books seeks to gain from the subsequent reduction in the prices of shares. (ANI)