oppn parties Fresh Charges Against The Adani Group Need To Be Probed Further

News Snippets

  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
  • Re goes down to 84.76 against the USD but ends flat after RBI intervenes
  • Sin goods like tobacco, cigarettes and soft drinks likely to face 35% GST in the post-compensation cess era
  • Bank credit growth slows to 11% (20.6% last year) with retail oans also showing a slowdown
  • Stock markets continue their winning streak on Tuesday: Sensex jumps 597 points to 80845 and Nifty gains 181 points to 24457
  • Asian junior hockey: Defending champions India enter the finals by beating Malaysia 3-1, to play Pakistan for the title
  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
Australia thrassh India in the 4th Test, dim their chances of making the WTC finals, Rohit, Virat and Rahul fail once again
oppn parties
Fresh Charges Against The Adani Group Need To Be Probed Further

By Linus Garg
First publised on 2023-09-06 07:12:16

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

Are the recent reports published in the Financial Times of UK a recycling of the Hindenburg Report as the Adani group claims or are the charges new and need a further, and serious, investigation? Reports in the FT have made two points: one, that Vinod Adani, brother of Gautam Adani and hence part of the promoter group, secretly held 13% of the group's shares that were available in the market for trading by the public in 2017 and two, market regulator Sebi was informed in 2014 that the Adani group was using own funds to trade in free-floating stocks of its own companies.

These charges are serious because if Vinod Adani or those connected to him were secretly controlling 13% of the free-floating stocks in Adani group companies, it was in violation of the rule that the promoter group could not control more than 75% of its own stock. Then, if the group was trading in its own stocks with own funds, it was indulging in price manipulation and if Sebi had the information and did not act upon it, it proves that there was serious slippage in regulation. In both cases, further investigation is needed to bring out the truth.

The Adani group claims that the FT reports are a rehashed version of the Hindenburg report. The stock markets also seem to have believed that because unlike when the Hindenburg report came out to cause a rout in Adani group's shares, the FT reports have have had little or no impact. But the fact remains that the charges are serious and Sebi must address them to preserve the integrity of the markets, the interests of the investors and its own reputation as a regulator. Also, the charges need to be thoroughly probed to assure the nation that there are no gaps in the regulatory architecture.