#Adani Fraud Case

[adanicase]

The Adani Group, one of the most profound global conglomerates, has its presence spread across the cement sector of India. By entering the cement sector, the global conglomerate has been able to give an excellent boost to the country’s cement manufacturing capacity. The firm has also been able to rise above the controversies of the Adani Fraud Case which have been ongoing for quite a while now.

[seemabhatnagar]

Expert committee was constituted by Supreme Court in the wake of hindenberg report

Background of the case : Vishal Tiwari v. Union of India & Ors.

A bunch of 04 Writ Petitions have been filed before the #SupremeCourt of India in the wake of #Hindenberg Report.

The report alleges, that the #Adani Group of companies has manipulated its share prices; failed to disclose transactions with related parties and other relevant information concerning related parties in contravention of the regulations framed by SEBI; and violated other provisions of securities laws. The report also states that Hindenburg Research has taken a short position in the Adani Group companies through US traded bonds and non-Indian traded derivative instruments.

Directions sought in Writ Petitions

The 04 #WritPetitions separately seek directions from the Apex Court;

Directions to the Union of India and the #UnionMinistryofHomeAffairs to constitute a committee headed by a retired judge of the Supreme Court to investigate the contents of the report published by Hindenburg Research;

Directions to the Union Ministry of Home Affairs to register an #FIR against Mr. Nathan Anderson (#founder of Hindenburg Research) and his associates for short selling, and for directions to recover the profits yielded by the short selling to compensate investors;

Sought a #courtmonitoredinvestigation by a #SpecialInvestigationTeam or by the Central Bureau of Investigation into the allegations of fraud and the role played by top officials of leading public sector #banks and other #lender institutions

Sought directions to any investigative authority to: (i) investigate the Adani Group companies under the supervision of a sitting judge of this Court; and (ii) investigate the role of LIC and SBI in these transactions.

Expert Committee Constituted by Apex Court

The Bench of the Apex Court comprising Hon’ble CJI Dr. D Y Chandrachud, Hon’ble Justice P S Narasimha & Hon’ble Justice J B Pardiwala vide their order dt. 02.03.23 constituted an Expert committee to protect the investors from the volatility of the kind headed by Justice Abhay Manohar Sapre, a former judge of the Supreme Court. The committee comprises Mr. O P Bhatt, Justice J P Devadhar (retired), Mr. KV Kamath,Mr. Nandan Nilekani & Mr. Somashekhar Sundaresan.

Report in two months

The Committee is requested to furnish its report in sealed cover to this Court within two months.

The Committee shall remit on the following:

Provide overall assessment of the situation including the relevant causal factors which have led to the volatility in the securities market in the recent past;

To suggest measures to strengthen investor awareness;

To investigate whether there has been regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in relation to the Adani Group or other companies; and

To suggest measures to (i) strengthen the statutory and/or regulatory framework; and (ii) secure compliance with the existing framework for the protection of investors.

The Apex Court in its order dt. 10.02.2023 noted the need of reviewing existing regulatory mechanisms in the financial sector to protect Indian investors from volatilities in the market. And suggested Solicitor General of India that to seek instructions from the Union of India on the constitution and remit of an expert committee.

SEBI’s suggestion for securing the interest of the investors:

Mandatory disclosures by listed companies to facilitate free and fair price discovery and to ensure that all investors have equal access to material information for them to be able to take informed investment decisions;

 Market systems to ensure seamless trading and settlement including volatility management;

Enforcement action in the event of misconduct in the market including fraud or violations of SEBI regulations.”

With respect to the aforesaid Writ Petitions SEBI submitted, it is already enquiring into, the allegations made in the Hindenburg report as well as the market activity immediately preceding and post the publication of the report and it will not be appropriate to report the details at this stage.

Seema Bhatnagar

[kumard12]

The Hindenburg Case: A Lesson in Communication & the Need for SEBI Lawyers

The world of financial markets thrives on information. Investor decisions, market trends, and ultimately, a healthy economic ecosystem rely on accurate and timely communication from companies and other market participants. However, recent events have highlighted the potential for information, or the lack thereof, to disrupt the market and create significant volatility. Navigating complex communication regulations and ensuring compliance can be challenging. This is where SEBI lawyers can provide invaluable expertise.

In one of her past blogs, Vaneesa Agrawal, the founder of Thinking Legal, delves into a similar case where SEBI penalized a company for violating communication regulations. This case demonstrates the importance of clear and compliant communication practices to avoid regulatory scrutiny.

This article, therefore explores the ongoing controversy surrounding the Hindenburg Research report on the Adani Group, highlighting the importance of responsible communication in the market and the role of SEBI, and SEBI expert lawyers, in maintaining market stability.

SEBI Scrutinizes Hindenburg Research Report With SEBI Lawyers on Watch

The Hindenburg Research Report on the Adani Group has sparked controversy and scrutiny. In January 2023, the US-based short-seller accused the conglomerate of stock manipulation and accounting fraud, triggering a massive sell-off in Adani stocks. The incident has raised concerns about market stability and responsible communication.

The Securities and Exchange Board of India (SEBI) has taken notice. They are also investigating potential violations of insider trading and disclosure norms. SEBI has therefore issued a letter to Hindenburg seeking clarification on their short position and report timing.

Furthermore, SEBI issued a show-cause notice to Hindenburg, outlining possible regulatory violations related to their research report and short-selling activity.

SEBI’s Scrutiny and Potential Violations

SEBI’s response to the Hindenburg report is a signal of its commitment to maintaining market integrity. The regulator is scrutinizing the communication practices of Hindenburg to ensure compliance with disclosure regulations. Potential violations could include,

Selective Disclosure: If Hindenburg possessed material non-public information about the Adani Group that wasn’t publicly disclosed before the report’s release, it could be considered selective disclosure.

Market Manipulation: If the report’s timing or content was intended to artificially depress the Adani Group’s stock price, it could be considered market manipulation.

It’s important to note that SEBI’s investigation is ongoing, and no conclusions have been reached regarding Hindenburg’s potential violations. SEBI lawyers meticulously review such aspects to determine if any regulatory breaches occur and to help businesses.

Case Study: SEBI’s Response to Improper Communication

The Hindenburg case serves as a timely reminder of SEBI’s strict stance on communication and disclosure norms. To illustrate this further, let’s examine a previous case where SEBI penalized a company for improper communication practices. This scenario highlights the importance of seeking guidance from SEBI lawyers to ensure compliance with regulations and avoid hefty penalties.

Such situations are where the expertise of SEBI lawyers becomes crucial. In her blog post, “SEBI Imposes Stiff Penalty for Unauthorized Communication of UPSI,” Ms Vaneesa Agrawal delves into a case where SEBI imposed a hefty penalty on a company for non-compliance with communication regulations.

SEBI, upon investigation, found the company to be in violation of disclosure regulations. The selective disclosure provided an unfair advantage to informed investors and misled the broader market. This case highlights SEBI’s zero tolerance for practices that distort the market through selective or inaccurate information dissemination. It also underscores the crucial role SEBI lawyers play in such cases.

Vaneesa Agrawal, a SEBI expert lawyer, also emphasizes the regulator’s stance in her past blogs: “This order sends a strong signal to market participants that SEBI is investigating and penalizing entities for communication of UPSI, even if such communication does not lead to trading.”

The Importance of SEBI Lawyers in a Volatile Environment

The Hindenburg case and the UPSI case illustrate the critical role of SEBI in maintaining market stability. SEBI’s regulations ensure fair and efficient market functioning by promoting accurate and timely information flow.

In this dynamic environment, where communication plays a critical role in shaping market sentiment, the importance of SEBI lawyers cannot be overstated. Here’s how SEBI expert lawyers can assist companies and investment advisors:

Understanding SEBI Regulations: SEBI regulations regarding communication and disclosure can be complex. SEBI lawyers can help companies and investment advisors navigate these regulations and ensure compliance.

Developing Compliant Communication Strategies: SEBI lawyers can work with companies to develop clear and concise communication strategies that avoid any potential misrepresentation of information or selective disclosure.

Navigating SEBI Investigations: In cases where SEBI investigates potential violations of communication norms, SEBI lawyers can represent companies and investment advisors, ensuring their rights are protected while cooperating with the investigation.

Mitigating Penalties: If a company is found to have violated SEBI regulations, SEBI lawyers can help them present their case and potentially negotiate a reduction in penalties.

Conclusion

The recent events surrounding the Hindenburg report and the UPSI case serve as stark reminders of the potential consequences of improper communication in the Indian market. SEBI, as the market regulator, and SEBI lawyers play a vital role in ensuring accurate information flow and protecting investors from misleading practices.

In this dynamic environment, companies and investment advisors must prioritize compliance with SEBI regulations. Seeking guidance from SEBI expert lawyers can provide invaluable support in understanding complex regulations, developing compliant communication strategies, and navigating potential investigations. By prioritizing clear and accurate communication, companies and investment advisors can help maintain market stability and foster investor confidence in the Indian financial system.

[adani-news]

According to Gautam Adani news, petitioners attempting to halt the continuing SEBI probe into claims made by Hindenburg Research had specific important requests dismissed by the Supreme Court.

[thelatestnews123]

Adani-Hindenburg case: SC grants SEBI time till August 14 to submit report

SEBI given time till August 14 to submit Adani-Hindenburg report: The Supreme Court has granted SEBI time until August 14, 2023 to finish its investigation into the Adani-Hindenburg matter and submit a report. SEBI is expected to deliver its findings by the specified deadline as a result of this update. Adani-Hindenburg issue and SEBI's investigation: SEBI's investigation focused on the issue of Global Depository Receipts (GDRs) by 51 listed Indian businesses and none of the listed Adani Group companies were among the 51 entities it was looking into. The investigation started after the Research's devastating study accusing the conglomerate of stock manipulation and fraud, which led to several petitions against the group being submitted to the SC.

For more reads : SEBI

[bisajs-blog]

NFRA aims to make Annual Transparency Reports mandatory

The National Financial Reporting Authority (NFRA) has made the proposal to make Annual Transparency Reports mandatory for audit firms. Information such as operational activities, management governance and ownership structures and other crucial information will be contained in this report.

The proposal of the NFRA is to make this report for the owners, auditors and the stakeholders to ensure more transparency and ensure lesser chances of fraud. Stakeholders can even submit their own feedback to the company. It will boost audit qualities. The proposals are on the lines of some of the international best practices implemented by independent audit regulators. In recent years, bias and inability to draw out fraudulent activities of big companies and businessmen has led to an increased need for a system to implement more transparent and evident audits of these business entities. In India, the cases of Adani Ltd. and Nirav Modi has triggered such requirements.

 The proposed disclosures assume significance in the backdrop of concerns about the working of large audit firms and conflict of interest involved. These firms provide both audit and non-audit services to the companies.

https://economictimes.indiatimes.com/industry/services/consultancy-/-audit/annual-transparency-report-may-be-must-for-audit-firms/articleshow/97038969.cms

[freelawbydjure]

PIL in SC seeking SEBI inquiry against US short-seller firm, Hindenburg, for exploiting innocent investors: Adani case

A Public Interest Litigation (PIL) was filed by Advocate ML Sharma before the Supreme Court seeking a detailed investigation against Hindenberg (US-based short-selling firm) that accused Gautam Adnani (Indian Business Tycoon) of corporate fraud. On January 24, 2023, Hindenburg published their report in which they accused the Adani group of malpractices and manipulations in stock prices. These allegations were refused by the Adani group terming it as an attack against India whereas a US-based short seller stated that, “fraud cannot be obfuscated by nationalism”. 

Due to the Hindenburg report, shares of the Adani group deteriorated drastically whereas the petitioner Vishal Tiwari stated, “Lots of people who had the whole lifetime saving in such stocks gets a maximum setback due to fall in such shares with a huge amount of money getting into drain. Various instances of suicides and other life-taking incidences come up because of a such huge loss of money where lifesaving of individuals is invested in.” Moreover, the overall capitalization of Adani Group stocks was reduced to 51%, i.e, 9.31 lakh Crore.

Advocate Sharma urged in his appeal before the top court, a direction to the center as well as the Securities and Exchange Board of India (SEBI) to inquire against Hindenburg for exploiting lakhs of innocent investors.

Also Read: Legal Articles

[adanicase]

This amount will be used for upskilling the people of Telangana so that they are able to earn themselves a source of living. The process will also ensure that the living conditions of the people of Telangana change for the better. The Adani Group will also be able to rise above the controversies of the Adani Fraud Case.

[xpaylife]

The Best Site For Sun Direct Recharge Online

The entertainment sector is getting more prevalent because of its pervasiveness through mobile phones, TV and over the internet. The timely Online DTH recharge is essential to smoothly enjoy the family time of entertainment, The Sun Direct recharge Online can be done easily through the best website XPay.Life that provides the most secure bill payment platform built on blockchain technology. 

The website is user-friendly and provides a single roof for the bill payment services for categories like Electricity, water, LPG, insurance, mobile postpaid, landline postpaid and Gas bill online. The website doesn't require any login or registrations and hence bill payment can be done without hassle, quick, safe and for everybody.

XpayLife is also a downloadable application compatible with both Android and iOS devices. The main advantage of using this app for bill payment as it doesn’t save any of the customer’s card details. This helps in fewer frauds and fewer unauthorized transactions using your account. Hence pay the broadband bill online through the application.

The steps to pay the bills online

The steps are easy, quick and efficient. First, go to the homepage of XPay.life website, choose the category you want to pay. Select the operator. In case you are from Mumbai and adani electricity bill payment online is possible by selecting the Adani Operator. Then fill in your customer Id/Account Number and then fetch the bill.

The payment procedure is also quick by providing various payment channels through credit and debit cards, UPI payments and QR code scanner and . But not everyone will use these digital methods for bill payment. There are still people who prefer physical cash over the fluid one. According to the Google BCG report, around 80% of India still doesn’t use the online digital payment modes.

hence to solve this problem and bridge the tremendous gap between the rural and urban technological shift.XPay.Life has introduced mobile vans as USP that is equipped with the bill payment kiosk, vending machine and mini-ATMs that will visit the remote villages during the weekly markets or whenever the footfall is high and urge the villagers for water bill payment through cash in the mobile van. Thus making digital advancements prevalent to all regions and sectors of the society

XPay.Life is also providing lucrative offers and cashback for bill payment. The landline bill payment offers are many and even the support team of our company is excellent with 24/7 support for early solving of any issue.

 For More information visit: https://www.xpay.life/

Source: https://www.techsite.io/p/1326805/t/the-best-site-for-sun-direct-recharge-online

[zoidresearch]

An Insight On Stocks Are In News | Zoid Research Update

Hello traders and investors. Here we describe stocks which are in news today are-

Aurobindo Pharma -Form 483 issued to Aurobindo Pharma's Unit 4 -Aurobindo Unit 4 inspected by US FDA from February 12-20 -US FDA issues 9 observations to Aurobindo Unit 4 US FDA observations -Aseptic processing areas deficient of system used to control aseptic conditions -Equipment & utensils not cleaned & sanitised at appropriate intervals

February auto sales: Tata Motors -Total JLR US sales down 2.4 percent at 9,013 units versus 9,231 units (YoY) -Total Jaguar US sales down 37.3 percent at 2,185 units versus 3,484 units (YoY) -Total Land Rover US sales up 18.8 percent at 6,828 units versus 5,747 units (YoY)

February auto sales: TVS Motor -Total sales up 37 percent at 2.90 lakh units versus 2.10 lakh units (YoY) -2-wheeler sales up 36.2 percent at 2.80 lakh units versus 2.06 lakh units (YoY) -Exports up 53.2 percent at 58,564 units versus 38,215 units (YoY) -3-wheeler sales up 86.3 percent at 9,731 units versus 5,223 units (YoY) -Domestic 2-wheeler sales up 33.5 percent at 2.30 lakh units versus 1.72 lakh units (YoY) -Scooter sales up 35.6 percent at 93,573 units versus 69,020 units (YoY) -Motorcycle sales up 92 percent at 1.13 lakh units versus 58,994 units (YoY)

PNB fraud case: ANI -CBI produces 6 accused before the special CBI court -Seeks police custody for Gokulnath Shetty & 5 others

VST Tillers - Sales numbers for February 2018 -Power Tillers sales at 2525 versus 1527 (YoY) -Tractors sales at 953 versus 651 (YoY)

Coal India -Production in February at 54.46mn Te -Offtake at 49.97mn Te

Welspun Enterprises -Appointed date for NHAI project is February 28, 2018 -The EPC contract is worth Rs 897 crore

NMDC -Price of lump ore at Rs 3,000 per tonne -Price of fines at Rs 2,660 per tonne -W.e.f 1st March 2018

Other stocks and sectors in the news today:

Bharat Forge and Ramkrishna Forgings in focus - February's total North America Class 8 truck sales up 76 percent at 40,200 versus 22,886 units (YoY)

Feburary auto sales: Hero MotoCorp total sales at 6.29 lakh units, up 20 percent YoY

GSFC commissions film grade Nylon 6 project on February 28; the plant has capacity of 15 MT per day of Film grade Nylon; also commissions caprolactam quality improvement project on February 28

Reliance Infrastructure board meeting on March 7 to raise funds through QIP

Fortis Healthcare receives notice from SFIO to submit some information and documents by March 9

PNB says internal auditor has been arrested

Allahabad Bank clarifies that they have informed the exchanges about exposure worth USD 366.87 million to PNB fraud

Can Fin Homes - RBL officials with the representatives from KPMG and EY met the management of the company and meeting was arranged by Canara Bank meeting was done to understand business model of the company

Canara Bank approves infusion of Rs 4,865 crore by GoI

Laurus Labs receives Form 483 for Unit 2 (formulations unit) with zero observations

Piramal Enterprises approves transfer of certain assets and liabilities to subsidiary for net consideration of Rs 1,729.48 crore

HCL Infosystems approves slump sale of “DigiSchool business undertaking”, part of the subsidiary of the company on going concern basis

Glenmark - S&P revises rating from negative to stable

Wipro to acquire minority stake in Denim Group

Religare receives letter from SFIO that MCA has ordered an investigation in the affairs of the company

HDFC Bank seeks to raise USD 2.5 billion via share sale: Mint

Adani Gas plans direct listing of shares: Mint

IDBI Bank may initiate insolvency process against Orissa Slurry pipeline. Sign up https://goo.gl/9A28mr and get free intraday trading tips on your mobile

[jobaaj]

IN CASE YOU MISSED IT: Deloitte is in trouble! It failed to detect a $470 million fraud!! The Tingo Group, a Nigerian agri-tech firm, was given a clean chit by Deloitte Israel wherein the firm reported a cash balance of almost $470 million. However, after subsequent investigations by the U.S. Securities and Exchange Commission, it was revealed that the firm only had $50 in cash!!! In addition, the Securities and Exchange Commission (SEC) uncovered "unsubstantiated transactions worth billions of dollars" controlled by entities controlled by Tingo CEO Dozy Mammobuosi.

It’s interesting to note that Hindenburg Research was the one that uncovered this scam and reported it to Adani Group!

In June 2023, Hindenburg accused Tingo of fabricating its books. In fact, the firm stated that the errors were so serious that they "could have been spotted by any semi-conscious finance undergrad with severe vision loss"!!! Industry participants are raising questions over the abilities of Deloitte while also questioning the accuracy of audits! Considering the fact that frauds are designed to be undetectable, auditors can detect only 4% of all frauds, and auditors are paid by the company they are auditing, the fairness of audit is certainly under doubt. Is audit meaningless? Or is Deloitte simply negligent?? Follow Jobaaj Stories (the Media arm of Jobaaj.com Group) for more.

[globaldailytribune-blog]

One more Bank Fraud case. AAP blames the Central Government

PNB scam has been much under discussion from past few days but it is not the only bank to suffer such loss. After the PNB fraudulent transactions case in Mumbai, Oriental Bank of Commerce in New Delhi has also been found to suffer a fraud of 389.85 crores. AAP spoke up about this fraud case of Oriental Bank of Commerce in a press conference. Members of Aam Aadmi Party spoke in a press conference: https://www.youtube.com/watch?v=2jK0lXDM2AE&feature=youtu.be They said that Banks are meant for the security of the money earned by common people. They questioned as to which organisation is worth trusting by common people. Where must the common man invest? Whom should they trust? On whom can they rely upon? Few businessmen like Ambani and Adani are indebted for about 855000 crore rupees. AAP said that what kind of frauds are going on under the Modi government. It has become easy for big businessmen to rob the country and leave the nation settling abroad and living peacefully. Slowly and slowly our country is becoming hollow.

AAP openly blamed and challenged Mr Modi. They said that the one who promised about bringing back the black money from the foreign countries is now acting reverse. He is giving a chance to some people to rob the white money of the common man stored in the banks and run away to the foreign countries. It has now become a trend and many such cases are coming under notice. Vijay Mallya, Lalit Modi, Nirav Modi have been famous names under investigation and now a new case has recently been reported. A Jeweller from New Delhi 397 crore rupees from Oriental Bank and ran away to foreign. After all such cases, how will a common man trust the banks for keeping their money safe and sound? A strict action regarding these cases is required by the Central Government failing to which these businessmen will definitely destroy the country. Read the full article

[videobookinfo]

Tweeted

Mining Giant Adani Cleared In Second Case Over Allegations Of Financial Fraud: https://t.co/Rn1lDIEkY0 via @YouTube

— News Hub (@videobookinfo) August 25, 2017

[adanicase]

Thiruvananthapuram Airport will be able to offer world-class airport infrastructure for the passengers. It will also help ease the travelling experience of the passengers. With this investment, the Adani Group will be able to put aside the controversies of the Adani Fraud Case and build itself an excellent reputation on a global scale.

[adanicase]

It will also allow deserving students to achieve the desired academic growth and build themselves a highly prosperous career. With this noble initiative, the Adani Group will also be able to rise above the controversies of the Adani Fraud Case.

[adanicase]

It also plans to serve the needs of global and domestic customers at its proposed fabrication plant in Maharashtra. The conglomerate has already entered into a joint venture with Israel’s Tower Semiconductor to build a semiconductor plant in Maharashtra where semiconductor chips will be manufactured. With this recent JV, the Adani Group will be able to walk past the rumours of the Adani Fraud Case.