SC Directs Sebi to Probe Adani, Group Shares Stay Up Amid Heavy Trade

Adani Row to be investigated, Supreme Court panel formed, watchdog report required.

On Thursday, the Supreme Court (SC) directed market regulator SEBI to conduct a detailed investigation and submit its findings within two months.

The Supreme Court established a committee of investigative experts headed by retired Justice Sapre. Other committee members are OP Bhatt, KV Kamath, Nandan Nilekani and Somsekhar Sundaresan.

Under the SC order, SEBI has requested an investigation into whether there has been any violation of the Securities Act. Sebi will also have to investigate whether there has been any share price manipulation and undisclosed related party transactions in violation of norms.

Adani Group’s select stocks cut earnings following SC order. Shares of Adani Enterprises were up 1% at Rs 1,580 by 11:25 am from the day’s high of Rs 1,646. Adani Ports rose 0.4% to Rs 604 from a high of Rs 617 on the BSE.

However, Adani Power, Adani Green, Adani Transmission and Adani Wilmar shares are locked at their respective 5% caps.

Meanwhile, earlier in the day, shares in four Adani Group stocks, namely Adani Enterprises, Adani Green Energy, Adani Transmission and Adani Ports and Special Economic Zone (SEZ), worth over Rs 15,000 crore, were traded via bulk trading. Trading changed hands on the National Stock Exchange (NSE) and BSE at the open on Thursday.

About 38.96 million shares, or 3.4% of the total share capital, of the group’s flagship Adani Enterprises, were traded on the BSE as of 9:15 am, worth about Rs 5,487 crore, exchange data showed.

Adani Ports and SEZ witnessed the block trade of about 88.6 million shares on the NSE, representing 4.1% of the company’s total share capital of Rs 5,282 crore.

Similarly, stakes in NSE of Adani Green Energy (55.6 million shares or 3.5% of total share capital) and Adani Transmission (28.4 million shares or 2.54% stake) worth Rs 2,806 crore and Rs 1,898 crore respectively changed hands.

The names of the buyer and seller were not immediately identified.

The four stocks traded 1% to 5% higher on the NSE at 10:25 am. In contrast, the Nifty 50 fell 0.51% to 17,361.

Shares of Adani Group have been hit hard since the January report by US-based short-seller Hindenburg Research. The group’s total market capitalization has slumped by over $130 billion. According to the Bloomberg Billionaires Index, Gautam Adani’s fortune will drop by $77.5 billion in 2023 alone.

Get Daily Prediction & Stocks Tips On Your Mobile