Adani-Hindenburg case: Supreme Court to deliver verdict today, here's a timeline of key events

The Supreme Court (SC) is scheduled to announce its judgment today, January 3, regarding multiple petitions urging an inquiry into accusations of accounting fraud and stock manipulation against companies within the Adani group. These accusations were detailed in a research report released by the US-based short-seller, Hindenburg Research, in January of the previous year.

Here’s a timeline of key events in the Adani-Hindenburg row:

January 2023: Hindenburg Research report

Hindenburg Research published a research report in January 2023, alleging "brazen accounting fraud" and "stock manipulation" by companies associated with the Gautam Adani-led Adani Group.

Stock market reaction: Massive Rout

Adani Group stocks experienced a notable decline, losing over $140 billion in value within days of the release of the Hindenburg report. This prompted concerns and reactions from investors and market regulators.

Cancellation of share sale

Due to the stock market turmoil triggered by the Hindenburg report, the Adani Group cancelled a planned €20,000 crore share sale.

Supreme Court intervention: March 2023

The Supreme Court of India takes suo motu cognizance of the matter and sets up a six-member panel, led by retired Supreme Court judge AM Sapre, to investigate regulatory failure by the Securities and Exchange Board of India (SEBI) and alleged breaches of laws by the Adani Group.

Committee's report submission: May 2023

The committee, led by Justice AM Sapre, submitted its report in May 2023. The report states that the allegations of stock price manipulation or violation of Minimum Public Shareholding (MPS) norms by Adani Group companies cannot be proven “at this stage.”

Red flags and foreign portfolio investors (FPI) regulations

The committee raised concerns about Foreign Portfolio Investors (FPI) regulations and questioned SEBI's probe into possible violations of MPS norms by Adani companies using overseas entities. It highlighted changes in FPI regulations in 2018 and 2019 that may have affected the investigation.

Supreme Court Judgment reserved: November 2023

On November 24, 2023, the Supreme Court reserved its judgment after concluding arguments. The bench, comprising Chief Justice Dhananjaya Y Chandrachud and Justices JB Pardiwala and Manoj Misra, indicated that a decision will be made after careful consideration.

Pending judgment: January 2024

As of January 3, 2024, the Supreme Court is set to deliver its judgment on the bundle of petitions demanding an investigation into the allegations made by Hindenburg Research against Adani Group companies. The judgment is expected to address the plea for a separate Special Investigation Team (SIT) and suggest steps for regulatory measures.