Sebi on Adani controversy says it is committed to ensure market integrity

 

The controversy erupted after Hindenburg Research published a report raising questions about the Adani Group and accusing it of accounting fraud as well as stock manipulation. The Securities and Exchange Board of India (SEBI) on Saturday said it is committed to ensuring the integrity and structural soundness of the market.

The regulator also said that all necessary monitoring measures have been taken to address any excessive volatility in individual stocks, according to news agency PTI.

In an official statement, without naming the Adani group specifically, the watchdog said that the shares of a business conglomerate have seen unusual price movement in the past week.

Officials confirmed that the statement was issued in the wake of the Adani case.

“As part of its mandate, SEBI seeks to maintain the orderly and efficient functioning of the market and to put in place a set of well-defined, publicly available surveillance measures (including the ASM framework) to address excessive volatility in specified stocks. set is kept. This mechanism is automatically triggered under certain conditions of price volatility in any stock, Sebi was quoted as saying by PTI.

It further said that in all matters relating to a specific unit, if any information comes to its notice, the same is examined as per the extant policies and appropriate action is taken after due enquiry.

SEBI has consistently followed this approach on entity level issues and will continue to do so in future also.

Stock exchanges BSE and NSE have placed three Adani group companies -- Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements -- under their short-term Additional Monitoring Measure (ASM), which basically means intra-day Trading will require 100 per cent upfront margin and is aimed at curbing speculation and short-selling in these stocks.

US short-seller Hindenburg Research published a report on the Adani Group on January 24, accusing it of improper use of offshore tax havens and flagging concerns about high debt, which pushed the group's shares higher. Crashed.

The group holds minority positions in Adani group companies. Hindenburg Research said there is evidence the group engaged in 'a brazen stock manipulation and accounting fraud scheme over the course of decades'.