The Securities Appellate Tribunal (SAT) will hear petitions filed by five offshore funds that have been named in the Hindenburg report. According to the funds, SEBI’s adjudication process is procedurally flawed. They argue that the adjudicating officer does not issue a reasoned opinion before proceeding and that earlier responses submitted by the funds to SEBI’s show-cause notices are not properly considered. The petitions also contest the steps SEBI takes during the adjudication stage, claiming that due process requirements are not met.
SEBI, in its response, maintains that the adjudication process follows due process. SEBI’s position is that the proper procedure is followed and that the grounds raised by the funds do not warrant interference at this stage.
The matter is scheduled for hearing on June 22. The SAT’s decision will determine whether SEBI’s adjudication proceedings proceed as initiated or require further steps, including review of the manner in which the adjudicating officer considers responses and issues findings.
