The Adani Episode Gave Investors Lessons On Risk

The Supreme Court's confidence in Sebi's probe of alleged violations by the Adani Group has been taken by investors as an early indicator of a let-off, but risk learnings must not get lost

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There was relief mixed with triumph in the Adani Group's response to Wednesday's Supreme Court (SC) verdict on petitions seeking an independent probe of alleged capital-market rule violations by the conglomerate. "Truth has prevailed," said the group's chief Gautam Adani on X, expressing gratitude for "those who stood by us." The apex court declined demands for a fresh probe led by a Special Investigation Team reporting to it or the Central Bureau of Investigation, as it found no reason to doubt the Securities and Exchange Board of India's (Sebi) ongoing investigation ordered by it after allegations of fraud, stock manipulation and more were made in a report by US short-seller Hindenburg and roundly denied by Adani almost a year ago. The SC found no merit in conflict-of-interest charges against members of an expert panel the court had tasked with checking the regulatory set-up, and cautioned against relying on media reports to question Sebi's probe. The SC rejected calls for ordering Sebi to revoke tweaks made in the Foreign Portfolio Inv