In a statement, SEBI advises investors to maintain composure and do their research before responding to such reports.
A statement has been released by SEBI, the market regulator. “Investors should remain calm and exercise due diligence before reacting to such reports,” the statement advises. The report’s disclaimer, which advises readers to presume that Hindenburg Research may have short holdings in the stocks it covers, should also be noted by investors.
The paper argues that SEBI has not taken any action against the Adani Group and contests the agency’s June 27, 2024, decision to issue a show cause notice to Hindenburg Research. Moreover, it claims that SEBI changed the 2014 SEBI (REIT) Regulations in order to benefit a global financial conglomerate with a wide range of assets. Notably, the claims against the Adani Group presented by Hindenburg Research have been
orders from the Supreme Court…
According to a statement released by SEBI, the Supreme Court mentioned in its Order dated January 3, 2024 that SEBI has finished 22 of its 24 investigations into the Adani group. One additional investigation was subsequently finished in March 2024, and the last one is almost finished. In the course of this investigation, over 100 summonses as well as about 1,100 letters and emails have been sent out in an attempt to gather information.
Furthermore, requests for assistance have been made in more than 100 letters to both domestic and foreign regulators as well as external agencies. In addition, more than 300 documents totaling about 12,000 pages have been examined.
It should be mentioned that SEBI starts quasi-judicial enforcement processes after investigations are concluded. This entails providing a hearing opportunity and a notice of cause, both of which lead to the issuance of a speaking order. After that, the public can access such an order. When investigations are finished, enforcement actions are started and being carried out appropriately in compliance with the relevant securities laws. According to policy, SEBI doesn’t comment on investigations or ongoing enforcement matters, the statement said.
Report inquiries SEBI’s response
According to SEBI, the study aims to raise doubts about its decision to issue a show cause notice to Hindenburg Research on June 27, 2024. The aforementioned show cause notice was given out in compliance with the legal process and accuses Hindenburg Research of violating securities regulations. Notably, Hindenburg Research has made the show cause notice that was issued to them available on its website. The notice of show cause explains its issuance. The established procedure and the natural justice principles are being followed in the handling of the present judicial proceedings pertaining to this topic.
“A major global financial conglomerate has reaped significant benefits from the adoption of the SEBI (REIT) Regulations 2014 and modifications to these regulations, according to the report. The SEBI (REIT) Regulations, 2014 have been revised on occasion, as can be observed in this regard, according to a statement released by SEBI.
SEBI also emphasized that the SEBI Board is the body that considers and deliberates on proposals for new regulations or modifications to current ones. It said, “The agenda papers for Board meetings and outcomes of Board discussions are also published on SEBI website as a measure of transparency.”
Additionally, SEBI made it clear that, in order to further the growth of the Indian securities market, it has previously emphasized the potential of a number of asset classes, including municipal bonds, SM REITs, InvITs, and REITs, for financialization of household savings, market democratization, and capital formation through the capital markets. “The Chairperson’s Statement in the most recent SEBI Annual Report also emphasizes these. Therefore, it is incorrect to argue that SEBI’s promotion of REITs and SM REITs among other asset classes was done just to benefit a single, sizable, international financial conglomerate, the statement continued.
Furthermore, SEBI has sufficient internal procedures in place to handle conflicts of interest, such as a disclosure framework and a recusal option.
Praveena Rai’s appointment as MD and CEO of MCX has been approved by SEBI.
