Stop media reports on Adani firms unless verified by Sebi, lawyer urges SC

A plea has been moved in the Supreme Court seeking a gag order to prevent media from publishing allegations in connection with the Adani group firms unless market regulator Securities and Exchange Board of India (Sebi) verifies them.

The interim application, filed by advocate M.L. Sharma, said media hype has led to the Indian share market "crashing by more than 50 per cent and the allegations are creating panic amongst the investors".

Sharma's application is a part of his PIL, which was filed last week. The plea has not been listed so far for hearing.

The application further added that common investors are being butchered which must be stopped in the interest of justice, while seeking a "gag order" on statements or other related news reports unless they are filed with and verified by Sebi.

The PIL filed by Sharma contended that US resident Nate Anderson of Hindenburg Research and his Indian entities "hatched a criminal conspiracy did short sale in hundreds of billion dollars prior and thereafter on 25th January 2023, they released a concocted news as research report qua to the Adani Group of the companies, got crash share market and squared up their short sell position at the lowest rate".

American short seller Hindenburg Research's report about Indian billionaire Gautam Adani has led to a stock rout, erasing over $100 billion from his empire and pushing him down on the global rich list. The Adani group rubbished the allegations made by the Hindenburg Research.

Sharma's plea further added, "they secured billions of profits by butchering citizens of India. However, SEBI did not suspend trading in the stock specially qua to the Adani group of the companies and allowed short sellers to exploit innocent investors".

The plea said: "Issue writ of mandamus to the respondents to conduct inquiry to prosecute & register FIR u/s 420 & 120-B of IPC r.w. S.15HA SEBI Act against the short sellers (Mr. Anderson and his associate (in India/US) for exploiting innocent Investors via short selling under the garb of artificial crashing via short selling couple with further direction to recover their turnover of short selling with penalty to compensate investors in the interest of justice".