Hindenburg: Congress leader moves SC, seeks probe against Adani Group

A plea has been filed in the Supreme Court seeking investigation under the supervision of a sitting apex court judge against theAdani Groupof companies in light of the allegations made by the US-based Hindenburg Research. The plea, filed by Congress leader Jaya Thakur, has also sought a direction for investigating the role of the Life Insurance Corporation of India (LIC) and the State Bank of India (SBI) in investing huge amounts of public money in the follow on public offer of Adani Enterprises, allegedly at a much higher rate than the prevailing share price in the secondary market. A follow on public offer is a process by which a company already listed on a stock exchange issues new shares to the investors or shareholders, usually the promoters. On Monday, the Centre had agreed to the apex court’s proposal to set up a panel of experts to look into strengthening the regulatory mechanisms for the stock market following the recent Adani group shares crash triggered by Hindenburg Research’s fraud allegations. The top court is seized of two petitions alleging exploitation of innocent investors and ”artificial crashing” of the Adani Group’s stock value.