Winning Bizness Desk

Mumbai. A new twist has emerged in the Adani-Hindenburg case and now the Enforcement Directorate (ED) has submitted a report to SEBI on the entire matter. SEBI has already submitted the report of this matter to the Supreme Court and Now ED has expressed suspicion on an Indian private bank and 15 investors in the case related to short selling of Adani Group companies. According to a report, the central investigating agency has shared its intelligence related to these 16 institutions with SEBI which includes foreign portfolio investors. At the same time, ED cannot register a crime investigation under the Prevention of Money Laundering Act (PMLA) unless there is a specific crime. According to experts, if SEBI files a complaint, it could become the basis for ED to initiate investigation under PMLA.

ED has gathered sufficient intelligence

Sources have said that ED has gathered sufficient intelligence against some Indian and foreign entities involved in “suspicious” activities in the Indian stock market. The report said that some FPIs had taken short positions two-three days before the Hindenburg Research report came out. They are being investigated to ascertain their beneficial ownership. Citing sources, the report further claims that most of these units had never dealt in Adani shares and some were trading for the first time.

SEBI submitted a status report

On March 2, the Supreme Court had constituted an expert panel on the issues arising from the Hindenburg Research report on Adani Group companies. Six members were included in the committee which is being presided over by former Supreme Court judge Justice AM Sapre. SEBI informed the Supreme Court last week that out of 24 investigations related to the Hindenburg report, it has submitted final reports on 22 and interim reports on two and updates are awaited from foreign organizations.