The Adani Group stocks are in focus as the capital market regulator Securities and Exchange Board of India (Sebi) is likely to submit its report to the Supreme Court of India on its probe over the allegations made by US-based Hindenburg Research against the Adani Group.
Adani group equities slumped between 2-5% on Monday, with Adani Enterprises shares falling more than 5%, making it the top loser on the Nifty index.
Adani Power and Adani Transmission were down more than 4% each, while Adani Ports & SEZ, Adani Green Energy, Adani Total Gas, and Adani Wilmar were all down more than 3%.
Furthermore, Ambuja Cements fell as much as 4.07%, ACC down 2.2%, and NDTV fell 3% on the BSE.
The Adani Group stocks are in the spotlight as the capital market regulator Securities and Exchange Board of India (Sebi) is expected to deliver its findings to the Supreme Court of India on its investigation into the charges leveled against the Adani Group by US-based Hindenburg Research.
The Supreme Court has allowed Sebi an extension until August 14 to complete its inquiry into claims made by a US short-seller against the billionaire Gautam Adani-led company.
According to CNBC-TV18, the Supreme Court has scheduled a hearing on August 29.
The Supreme Court had ordered the regulator to submit a detailed report on its probe into alleged violations of minimum public shareholding (MPS) guidelines by many Adani entities.
The Gautam Adani-led group was accused of “brazen accounting fraud” and “stock manipulation” in the Hindenburg investigation, which was released in January of this year.
Despite the fact that the conglomerate dismissed the article as “unresearched” and “maliciously mischievous,” it prompted a large sell-off in Adani group equities, which lost more than $140 billion in days and forced the cancellation of a 20,000 crore share sale in the firm’s flagship.
Following the resignation of Deloitte Haskins and Sells as the company’s statutory auditor due to “differences of opinion,” the share price of Adani Ports also decreased.
The Group announced that M S K A & Associates, an independent member firm of BDO International, has been selected as its auditor. The Group’s port business arm, Adani Ports and SEZ Ltd.
Since FY2018, Deloitte Haskins has served as Adani Ports’ statutory auditor. Last year, they were hired for another five-year term.
Deloitte’s letter of resignation from its position as Adani Ports’ statutory auditor revealed that the Big 4 auditor left the company too soon, primarily because the company led by Gautam Adani was unwilling to conduct an impartial external audit and there was a lack of clarity regarding transactions with specific parties, as claimed in a Hindenburg Research report from January.
