A Supreme Court-appointed panel, whose task was to see if India's market regulator played its role in protecting the interest of small investors in Adani Group stocks, has made its report public. Here are some key findings from the report.
SEBI suspects 13 overseas entities may have links with Adani Group and investigations are on since October 2020
The 13 foreign entities are yet to demonstrate that their beneficial owners aren't funded by Adani Group
Hindenburg report gas reinforced Sebi suspicion that something is amiss and it desires to probe further.
If a foreign investor is found reinvesting money from Adani Group promoters back into the company, it would be a violation of law
Adani Group has denied the allegation that some foreign investors have routed promoter money into the stocks
SEBI is unable to satisfy itself that the 42 contributors to the foreign funds are not linked to Adani Group
SEBI is trying to identify contributors who have an economic interest in these FPIs, and the investigation has hit a wall
It is now for SEBI to conclude investigations within a precise timeframe.
Suspicions, however strong, cannot replace proof. SEBI needs to investigate more to make a prima facie case.