The SEBI Act under Section 24B prescribes for the power of the Central Government to grant immunity to entities which make a full and true disclosure in respect of the alleged violation, subject to such conditions as it may think fit to impose. The provision provides that such power must be exercised in consultation with SEBI. Now can such powers be exercised in favor of Hindenburg in the prevailing circumstances. For the Central Government to exercise any such power in favor of Hindenburg, there have to be certain peculiar circumstances –
a. Hindenburg has to make such an application to this effect;
b. The report of Hindenburg must contain solid evidence to back the allegations and must be cogent enough to enable SEBI to arrive at reasoned findings;
c. Consequently, SEBI must arrive at a conclusion that the report was in the form of a market intelligence and was thereafter used for orderly development of Indian Securities market.
The Supreme Court of India has held in past that fraud vitiates all past acts which are a consequent of such fraud. Hence, if a case of fraud is established against Adani, there is a bright possibility that the research firm gets off the regulatory hook, of course, subject to it making an application to that effect.
Source: Barandbench
