#Adani Fraud Case

[adanicase]

The Adani Group will be able to get one step ahead towards becoming one of the biggest cement manufacturers in the country. Currently, it holds the second spot. Its position lies just after UltraTech Cement. The controversies of the Adani Fraud Case will also gradually subside.

[sharemarketinsider]

Gautam Adani’s U.S. Fraud Charges: Impact on Indian Markets and Global Investments

📉 What does Gautam Adani’s U.S. fraud indictment mean for global markets and India’s economy? A $34 billion market drop, accusations of bribery, and high stakes for investors—this case could reshape India's financial landscape.

👉 Read more to explore the risks, opportunities, and what’s next for the Adani Group!

[jasminewilson143]

Charges have been framed against Gautam Adani along with seven others in the $265 m bribery case.

Charges have been framed against Gautam Adani along with seven others in the $265 m bribery case. While the world watched with its breath bated, a US prosecution indictment of Gautam Adani, a tycoon and the chairman of the Adani Group, dominated all the interest. Many are fascinated because of the gravity of charges and the names against whom these are brought. So here is the detailed look into…

[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

[jobaaj]

𝐁𝐢𝐠 𝐚𝐧𝐧𝐨𝐮𝐧𝐜𝐞𝐦𝐞𝐧𝐭 𝐛𝐲 𝐭𝐡𝐞 𝐀𝐝𝐚𝐧𝐢 𝐆𝐫𝐨𝐮𝐩! 🤔🤨 𝐍𝐨 𝐛𝐫𝐢𝐛𝐞𝐫𝐲 𝐜𝐡𝐚𝐫𝐠𝐞 𝐨𝐧 𝐆𝐚𝐮𝐭𝐚𝐦 𝐀𝐝𝐚𝐧𝐢!! Just days after a US order alleged that billionaire Gautam Adani and key executives were involved in a multi-billion-dollar bribery and fraud scheme—triggering a staggering $55 billion loss—the Adani Group has issued a strong clarification.

In a detailed stock exchange filing, the Group emphasized that there are no bribery charges against Gautam Adani, his nephew Sagar Adani, or executive Vineet Jain, firmly countering the accusations!

While the US DOJ’s indictment lists five counts, the first and fifth counts, which relate to violating FCPA and obstructing justice, do not name these 3 individuals! "Mr. Gautam Adani, Mr. Sagar Adani, and Mr. Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or civil complaint of the US SEC," the Adani Group said in a statement. According to the group, “incorrect and reckless reporting” by foreign and domestic media has inaccurately named these 3 individuals as accused in these charges, which was not the case. While they are facing charges of securities and wire fraud, the bribery charges are against executives of Azure Power and a Canadian investor! When reporting, the stock of Adani Enterprises was trading at around Rs 2,226.40 per share, up 3.52%. 𝑨𝒓𝒆 𝒕𝒉𝒆𝒚 𝒈𝒖𝒊𝒍𝒕𝒚? 𝑶𝒓 𝒊𝒔 𝒔𝒐𝒎𝒆𝒐𝒏𝒆 𝒕𝒓𝒚𝒊𝒏𝒈 𝒕𝒐 𝒇𝒓𝒂𝒎𝒆 𝒕𝒉𝒆 𝑨𝒅𝒂𝒏𝒊 𝑮𝒓𝒐𝒖𝒑? Follow ProCapitas for more financial insights. Follow Jobaaj Stories (the media arm of Jobaaj.com Group) for more.

[news-buzz]

Indian billionaire Adani, 3 former executives of Canadian pension fund charged in fraud scheme News Buzz

Indian billionaire Gautam Adani, one of Asia’s richest men, may be facing his biggest challenge yet with an indictment by U.S. prosecutors for alleged fraud and bribery. But it’s unclear just how the case will affect his businesses and own future — as well as the Indian economy and government. On Friday, shares in some of the Adani Group’s companies began ticking back up after plunging a day…

[news365timesindia]

[ad_1] On Thursday, the Adani Group strongly refuted the bribery allegations against directors of Adani Green made by the US Department of Justice and the US Securities and Exchange Commission as baseless. Adani Group Spokesperson says, “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied. As stated by the US Department of Justice itself, “the charges in the indictment are… pic.twitter.com/rSuxuHTFUo — ANI (@ANI) November 21, 2024 The Adani Group spokesperson, in an official statement, said all legal recourse will be taken. “The US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” the statement read. The group further highlighted a key aspect of the legal proceedings, noting, “As stated by the US Department of Justice itself, “the charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought. The Adani Group also reaffirmed its dedication to high governance, compliance, and transparency standards across its operations. The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organisation that is fully compliant with all laws.” Postponed The US Dollar-Denominated Bond Offerings Amid these allegations, Adani Green Energy informed stock exchanges that its subsidiaries have decided to defer their US dollar-denominated bond offerings. It said, “In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings.” US prosecutors had charged Gautam Adani and others in an alleged Solar Energy contract bribery case. A five-count criminal indictment has been unsealed in the United States District Court for the Eastern District of New York, charging prominent Indian executives, including the Chairman of the Adani Group, Gautam Adani, by linking them to an alleged bribery and fraud scheme. According to the US Attorney’s Office, Eastern District of New York, “A five-count criminal indictment was unsealed in federal court charging Gautam Adani, Sagar R. Adani, and Vneet S. Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.” The indictment also charges Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company with securities that had traded on the New York Stock Exchange (the U.S. Issuer), and Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, former employees of a Canadian institutional investor, with conspiracy to violate the Foreign Corrupt Practices Act in connection with the alleged bribery scheme.     [ad_2] Source link

[news365times]

[ad_1] On Thursday, the Adani Group strongly refuted the bribery allegations against directors of Adani Green made by the US Department of Justice and the US Securities and Exchange Commission as baseless. Adani Group Spokesperson says, “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied. As stated by the US Department of Justice itself, “the charges in the indictment are… pic.twitter.com/rSuxuHTFUo — ANI (@ANI) November 21, 2024 The Adani Group spokesperson, in an official statement, said all legal recourse will be taken. “The US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” the statement read. The group further highlighted a key aspect of the legal proceedings, noting, “As stated by the US Department of Justice itself, “the charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought. The Adani Group also reaffirmed its dedication to high governance, compliance, and transparency standards across its operations. The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organisation that is fully compliant with all laws.” Postponed The US Dollar-Denominated Bond Offerings Amid these allegations, Adani Green Energy informed stock exchanges that its subsidiaries have decided to defer their US dollar-denominated bond offerings. It said, “In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings.” US prosecutors had charged Gautam Adani and others in an alleged Solar Energy contract bribery case. A five-count criminal indictment has been unsealed in the United States District Court for the Eastern District of New York, charging prominent Indian executives, including the Chairman of the Adani Group, Gautam Adani, by linking them to an alleged bribery and fraud scheme. According to the US Attorney’s Office, Eastern District of New York, “A five-count criminal indictment was unsealed in federal court charging Gautam Adani, Sagar R. Adani, and Vneet S. Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.” The indictment also charges Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company with securities that had traded on the New York Stock Exchange (the U.S. Issuer), and Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, former employees of a Canadian institutional investor, with conspiracy to violate the Foreign Corrupt Practices Act in connection with the alleged bribery scheme.     [ad_2] Source link

[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.

[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.

[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

[news365timesindia]

[ad_1] GG News Bureau New Delhi, 21st Nov. The Congress party on Thursday called for a Joint Parliamentary Committee (JPC) investigation into the alleged “Adani Mega Scam,” following charges against billionaire Gautam Adani by US prosecutors. The charges include bribery and fraud, where Adani is accused of orchestrating a scheme to bribe Indian government officials for favorable terms in solar power contracts. US authorities allege that between 2020 and 2024, Adani, his nephew Sagar, and others in the Adani Group paid over USD 250 million in bribes to secure contracts projected to generate over USD 2 billion in profits. The Securities and Exchange Commission (SEC) has filed a five-count indictment, including securities fraud and wire fraud conspiracies, accusing the Adanis of criminal activities carried out with the protection of the Indian government. Congress General Secretary Jairam Ramesh said the charges further vindicated the party’s demand for a JPC probe into the Adani Group’s activities. “The SEC’s actions highlight the failure of SEBI (Securities and Exchange Board of India) in investigating Adani Group’s violations, including the source of its investments and shell companies,” Ramesh stated in a post on X. Ramesh also emphasized that the Congress had previously raised concerns about the close ties between Prime Minister Narendra Modi and the Adani Group, alleging that the Prime Minister’s protection allowed the conglomerate to act with impunity. He reiterated that a credible investigation into the case was necessary, calling for the appointment of a new SEBI head to complete the securities law investigations and the formation of a JPC to probe the full extent of the scandal. The charges against Adani come as a blow to the conglomerate’s reputation, with US prosecutors accusing him and his associates of corrupt dealings in securing lucrative government contracts. The Adani Group has not yet responded to the allegations. The Congress also pointed out that the US authorities’ action against the Adani Group highlights the failure of Indian institutions, which they claim have been captured by the ruling Bharatiya Janata Party (BJP). The US case is seen as part of efforts to address foreign corruption involving companies with ties to US investors or markets. The Adani Group is a multinational conglomerate involved in various sectors, including ports, energy, and renewable energy. The post Congress Demands JPC Probe into Adani’s Alleged Bribery and Fraud Charges in US appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link