Tag: Sebi

Congress wonders if SEBI request for extension in Adani case an attempt to bury the ‘scam’

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New Delhi: The Congress on Saturday expressed apprehension over the SEBI’s six-month extension request to probe the alleged stock market manipulation of Adani group shares, saying it hopes it was not an effort to bury the “scam.”
AICC general secretary Jairam Ramesh said the Securities and Exchange Board of India has asked for a six-month extension after the Supreme Court Committee ordered it to examine the stock market transactions of the Adani Group.
“Hope this request by SEBI is not an effort to bury the scam or drag it out in the hope that the furore will die down,” Ramesh said on Twitter.

“The Committee as it needs to be recalled – has limited terms of reference to begin with. It cannot (and will not want to) investigate the entire political science and business practices of the Group. That only a JPC can do,” he said.
Trinamool Congress MP Mahua Moitra in her turn termed the move a joke.
“This is a joke. SEBI has been investigating since October 2021 when they replied to my letter of July. While they prima facie see violations (no surprise)- they want 6 months to protect their favourite businessman so that he can get maximum time to cover up.
“The SEBI Chairperson told the Committee that the Adani matter is the elephant in the room. Surely then it deserves to be treated with greater urgency given the free run this particular ‘haathi mere saathi’ has had in all these years of Mitr Kaal,” she said on Twitter.
Market Regulator SEBI has moved the Supreme Court seeking a six-month extension to complete its probe into the allegations of stock price manipulation by the Adani group and any lapses in regulatory disclosures.

The top court had on March 2 asked SEBI to probe the matter within two months and also set up a panel to look into the protection of Indian investors after a damning report by a US short seller wiped out more than USD 140 billion of the conglomerate’s market value.
In an application moved before the court, SEBI submitted that to ascertain possible violations related to misrepresentation of financials, circumvention of regulations and/or fraudulent nature of transactions, it would take six more months to complete the exercise.
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#Congress #wonders #SEBI #request #extension #Adani #case #attempt #bury #scam
( With inputs from www.siasat.com )

April 29, 2023
Adani issue: Sebi chief declines to comment, says matter sub-judice

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Mumbai: Sebi Chairperson Madhabi Puri Buch on Wednesday said the regulator will not comment on the Adani issue and that the matter is sub-judice.
In the wake of a report by the New York based short-seller Hindenburg Research on the Adani group in January, there was a steep fall in the shares of the ten listed Adani group companies and some of them lost over 85 per cent of their market value.
The allegations made by the short seller were rejected by the Adani group.
On March 2, the Supreme Court set up a six-member expert committee to look into the Adani matter.
The apex court also directed the markets regulator to investigate whether there was violation of Sebi rules and any manipulation of stock prices as alleged by the brokerage.
“We never comment on entity-specific matters as a policy, and on top of that, the matter is before the Supreme Court. We never comment on sub-judice matters,” said Buch addressing the media after a board meeting of Sebi.
“We will follow the advice of the apex court. We are duty-bound to follow whatever the highest court of the land has said,” she added.
It was Buch’s first press conference after the Hindenburg Research report on the Adani group.

Further, she said the apex court has also instructed the regulator to precisely give the update to the committee and it will be inappropriate to comment on the matter.
The group has rejected the allegations made by Hindenburg Research.
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#Adani #issue #Sebi #chief #declines #comment #matter #subjudice
( With inputs from www.siasat.com )

March 29, 2023
Sebi to put in place framework to prevent frauds by stock brokers

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New Delhi: Markets regulator Sebi on Wednesday approved a slew of proposals, including ending the practice of individuals holding permanent directorship at boards of listed companies and putting in place a framework to prevent frauds by stock brokers.
The proposals were cleared by the board of the Securities and Exchange Board of India (Sebi) during its meeting here on Wednesday.
The watchdog has approved a regulatory framework to allow private equity funds to become sponsors of mutual funds, a move that will help further deepen the mutual fund industry.
Besides, the regulator has given its nod for norms for Environmental, Social and Governance (ESG) disclosures by listed companies.
According to a release issued after the board meeting, Sebi said it has decided to end the practice of individuals having permanent seats at boards of listed companies. The move is part of efforts to further boost the corporate governance ecosystem.
Among other measures, the regulator will put in place a formal mechanism to prevent frauds and market abuse by stock brokers.
Further, Sebi will introduce fund-blocking facility for secondary market transactions like being done for Initial Public Offerings (IPOs). The measure is aimed at safeguarding investors’ money from misuse by stock brokers.

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#Sebi #put #place #framework #prevent #frauds #stock #brokers
( With inputs from www.siasat.com )

March 29, 2023
Congress MPs demand summoning of SEBI chief on Adani-Hindenburg issue

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New Delhi: Congress MPs on Wednesday sought examining of SEBI and RBI chiefs, officials of the Ministry of Corporate Affairs and other regulatory bodies by a parliamentary panel on finance to ascertain whether there were any failures on their part on the Adani issue.
Manish Tewari of the Congress raised the demand during a meeting of the Parliamentary Standing Committee on Finance but BJP members opposed it saying the issue was sub-judice.
Tewari was supported by party colleagues Gaurav Gogoi and Pramod Tiwari, TMC MP Saugata Roy and BJD’s Pinaki Misra and Amar Patnaik during the meeting, sources said.
They added that BJP MPs Ravi Shankar Prasad, SS Ahluwalia and Sushil Kumar Modi strongly opposed the demand saying the issue is sub-judice as the Supreme Court is looking into the issue and has set up a committee in this regard.
The sources said Tewari stated that the chiefs of SEBI, RBI and other regulatory agencies were required to be examined to ascertain whether there was any regulatory failure on the Adani group share meltdown on Indian stock markets after the Hindenburg report came out.
Committee chairman Jayant Sinha asked the Congress members to give in writing their demand, the sources said, adding that the opposition members said this was part of the panel’s work to oversee the regulatory framework.
When contacted, Sinha said, “Some honourable members brought up a specific matter that is currently being evaluated through the SC expert committee it was agreed let the SC process be concluded.”
The issue was discussed for over an hour but remained inconclusive.

The Finance Committee met in Parliament complex to get a briefing by the representatives of Ministry of Statistics and Programme Implementation on the subject ‘Issues related to MPLAD Scheme’ and for consideration and adoption of draft reports on Demands for Grants (2023-24).
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#Congress #MPs #demand #summoning #SEBI #chief #AdaniHindenburg #issue
( With inputs from www.siasat.com )

March 15, 2023
Adani Requests SEBI to Reduce Trading Hours to 15 mins

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All stocks belonging to the Adani group — including Adani Enterprises (ADANIENT), Adani Ports (ADANIPORTS), Adani Power (ADANIPOWER), Adani Transmission (ADANITRANS) and Ambuja Cements (AMBUJACEM) — suffered steep losses on Wednesday, in more pain for investors amid a crisis at the embattled conglomerate.
In order to restore confidence among investors, Adani Group is taking several measures. One such measure was repaying the loans. Adani group firm Adani Ports & SEZ paid Rs 1,500 crore loan and promised to repay more as the group makes a comeback strategy after a sellout triggered by a damning report by US-based Hindenburg Research.
Reportedly, in another measure to stop the further stock price fall, Gautam Adani has requested the market regulator, SEBI (Security Exchange Board of India) to reduce the trading time.
In his letter to SEBI, Gautam Adani requested SEBI to keep the trade timing for 15 mins only, 9:15 to 9:30. Citing a report by HiddenBurg, Gautam Adani said trading is consuming a lot of time of youth which can be utilised in a better way.
“It’s a zero sum game, someone’s loss is someone’s gain, giving so much time to it is not worth. 15 mins is enough for that” said Gautam Adani.
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#Adani #Requests #SEBI #Reduce #Trading #Hours #mins
[ Disclaimer: With inputs from The Fauxy, an entertainment portal. The content is purely for entertainment purpose and readers are advised not to confuse the articles as genuine and true, these Articles are Fictitious meant only for entertainment purposes. ]

February 22, 2023
Adani row: Jairam Ramesh urges RBI, SEBI to probe allegations

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New Delhi: Senior Congress leader Jairam Ramesh has written to the Reserve Bank of India (RBI) Governor Shaktikanta Das and Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and sought an investigation into allegations of financial irregularities and stock manipulation against the Adani Group.
In his letter to Das posted on Twitter on Wednesday, Ramesh urged the RBI to ensure that “excessive debt exposure” by the Adani Group currently and in the future does not destabilise India’s banking system.
“The Adani Group has been described as ‘deeply over-leveraged’ – if the Adani Group has artificially inflated the value of its stock through manipulation by offshore shell companies and raised funds by pledging those overvalued shares, the recent sell off in stock prices is creating vulnerabilities for the Adani Group to find financing, and by implication for India’s banking system,” the Congress MP said in his letter dated February 14.
Here are my letters to the RBI Gov & Chaiperson of SEBI expressing the hope that a full-fledged independent investigation will be carried on the numerous allegations against the PM- blessed Adani Group. pic.twitter.com/U7L8QLRb5f
— Jairam Ramesh (@Jairam_Ramesh) February 15, 2023
Ramesh called on the RBI to look into two aspects what is the true Adani Group exposure of the Indian banking system and what are the explicit and implicit guarantees that the Adani Group has been given that it will be bailed out by Indian banks if foreign funding dries up.
“Will the RBI ensure that Indian banks are not forced to step in to substitute for any shortfall in foreign financing, especially given the Adani Group’s political connections,” Ramesh asked.
Public sector financial institutions like the Life Insurance Corporation of India and the State Bank of India have been “unusually generous” to the Adani Group in recent years, the Congress leader alleged.
The RBI must ensure that risks to financial stability are investigated and contained, he said in his letter.
The risks of contagion from any collapse in the Adani Group’s ability to secure financing must be monitored constantly, Ramesh argued.

“As the steward of the financial system, the RBI must do everything possible to protect India’s banks and financial institutions, and we urge you to act in the national interest to ensure that India’s taxpayers do not pay the price for the ‘misgovernance’ and potential ‘illegalities’ of one influential business house,” he wrote to Das.
Ramesh also posted his letter to SEBI chief Buch on Twitter saying, many Indian citizens were disturbed by the allegations that the Adani Group has indulged in “brazen stock manipulation” and “accounting fraud” via a “vast labyrinth of offshore shell entities”.
“Apart from the potential violation of several Indian laws, this goes against everything that the Securities and Exchange Board of India (SBI) stands for. We urge you to investigate all potential violations and to ensure complete transparency about who is investing in Adani Group companies,” Ramesh said.
“Given the Adani Group’s size and political connections, it is incumbent that such investigations are seen as fair and complete, with no favour shown to the influential business group,” the Congress general secretary stressed.
Any failure to do so will cast a shadow on Indian corporate governance and on India’s financial regulators, and could affect our ability to raise funds globally, he argued.
In his letter, Ramesh asked why financial institutions of national importance such as the Life Insurance Corporation of India (IIC) and the State Bank of India (SBI) have “heavily bought” Adani Group equity when most private funds have been severely underweight because of concerns over corporate governance and indebtedness.
“LIC, which 30 crore Indians trust with their life savings, has lost thousands of crores in Adani Group stock in recent days. Should we not ensure that such public sector financial institutions are more conservative in their investments than their private sector counterparts and free from pressure from above?” Ramesh said.
The inclusion of Adani Enterprises in the widely used National Stock Exchange Nifty 50 index in September 2022 occurred despite the firm’s weak fundamentals, an excessive price-to-earnings ratio and a tiny free float, he alleged.
He further claimed that adding Adani Enterprises compelled supposedly conservative Nifty index funds to make significant purchases of this risky stock, including the Employees Provident Fund Organisation, India’s largest pension fund.
“In recent days, global stock indices have suspended Adani Group companies while the matter is investigated, but the NSE has failed to take any similar action to protect investors,” Ramesh said.
Is it not SEBI’s responsibility to ensure that index investors are protected from investing in questionable firms, he asked.
“We urge SEBI to play its role as the steward of India’s financial markets on behalf of the crores of Indians who have faith in the fairness of India’s financial markets,” the Congress leader said.
Ramesh shared the letters on Twitter and said that he has expressed the hope that a “full-fledged independent investigation will be carried on the numerous allegations against the ‘PM-blessed’ Adani Group”.
The Congress has been demanding a Joint Parliamentary Committee probe into the allegations against the Adani Group by US-based short-seller Hindenburg.
The Adani Group has dismissed the allegations as baseless.

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#Adani #row #Jairam #Ramesh #urges #RBI #SEBI #probe #allegations
( With inputs from www.siasat.com )

February 15, 2023
SC asks Centre, SEBI to submit report on steps taken on Adani-Hindenburg row

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The Supreme Court instructed the Centre and SEBI to submit a report on the regulatory regime and steps taken in the aftermath of the Hindenburg-Adani issue, setting Monday as the day for hearing the case.
The court has urged the government and SEBI to provide information by Monday on the causes of the market crash following the Hindenburg Research report, as well as suggestions on how the regulatory system may be reinforced to prevent such an event in the future.
The court directed Solicitor General Tushar Mehta to submit the note after consulting with the government and SEBI on the best course of action, and even advocated forming an expert committee to make necessary changes to the legislative and regulatory framework governing security markets.
The bench stated that because there is seamless money movement and growing middle class investment in the stock market, a strong system must be put in place to protect investors.
“The point that really bothers us is how do we protect the interest of the Indian investors,” the bench said
“Can we contemplate an expert committee that can give inputs for modifying the statutory regulations so that it doesn’t happen again?” the apex court questioned SEBI.
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#asks #Centre #SEBI #submit #report #steps #AdaniHindenburg #row
( With inputs from www.siasat.com )

February 10, 2023
Measures in place to address excess volatility: Sebi on Adani crisis

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New Delhi: Amid a raging controversy over a meltdown in Adani group stocks, regulator Sebi on Saturday said it is committed to ensuring the stock market’s integrity and all necessary surveillance measures are in place to address any excessive volatility in individual shares.
Without naming the Adani group specifically, the capital markets watchdog said in a statement that unusual price movement in the stocks of a business conglomerate has been observed in the past week.
Officials confirmed that the statement has been issued in the wake of the Adani matter only.
“As part of its mandate, Sebi seeks to maintain orderly and efficient functioning of the market and has put in place a set of well-defined, publicly available surveillance measures (including the ASM framework) to address excessive volatility in specific stocks.
“This mechanism gets automatically triggered under certain conditions of price volatility in any stock,” the Securities and Exchange Board of India (Sebi) said.
Stock exchanges BSE and NSE have put three Adani group companies — Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements — under their short-term additional surveillance measure (ASM), which basically means that intra-day trading would require a 100 percent upfront margin and is aimed at curbing speculation and short-selling in these stocks.
Sebi further said that in all specific entity-related matters, if any information comes to its notice, then, as per extant policies, the same is examined and after due examination, appropriate action is taken.
“Sebi has consistently followed this approach on entity-level issues and would continue to do so in future as well,” it added.

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#Measures #place #address #excess #volatility #Sebi #Adani #crisis
( With inputs from www.siasat.com )

February 4, 2023