This Supreme Court has recently constituted an expert committee in order to investigate the case of price manipulation in the Adani Company.. The panel has however also reported that on the basis of the material information it is not possible to conclude that there was not even a single instance of price manipulation. The Supreme Court has already ordered on 2nd March that a 6 member committee will be responsible to investigate the charges of stock manipulation by the Adani group according to the disclosure of the Hindenburg research. Investigation has not discovered any substantive material that discloses any transactions with the variated parties which denote the violation of the laws made by the security and exchange Board of India. The report by the international organisations was published on 24th January 2023. According to the report, Adani group is responsible for manipulating the stock price and also undertaking activity with respect to its accounting. According to the sources this has been the largest fraud in the corporate history of India that has been committed by an Indian group.
The committee has submitted a report that Adani has taken all the possible measures in order to comply with the existing law and take all the steps for the benefit of the investors. The most important divisions behind the increase in the stocks of Adani after 24th January were only due to some stock market corrections and this had nothing to affect the confidence of the investors in the market. The committee has also confirmed that Adani group has not funded any kind of foreign portfolio investment without the permission of the security and exchange Board of India. However there is an instance of suspicious trading on part of Adani and the 6 associated entities. Around 13 offshore investors are related with this deal. The report of SEBI has also been discussed in detail and it has been found that around 20 transactions have been reported to be fraudulent and in violation of the law for the time being in force. It is important to enforce a policy which is consistent with the intention of the Legislature in order to instil the confidence of investors in the stock markets of the country.
The vitality of the market is subject to the actions of multinational groups. The government is making all the possible efforts in order to control the actions of the multinational corporations in India and all the subsidiaries which have their head offices in other countries. The expert panel has been helpful to bring forward all of these important factors so that further investigation can take place. This particular disclosure is very important in order to improve the stability of the stock prices in the times to come of the Adani group.
