Who is Cyril Shroff, Adani's father-in-law, part of SEBI?
Another twist in the tale bigger Adani group fiasco. Karan Adani’s father-in-law Cyril Shroff is part of the committee on corporate governance in SEBI i.e. The Securities and Exchange Board of India. Karan Adani is the son of Adani Group’s chairman Gautman Adani. He is also the CEO of Adani ports and SEZ.
Talking about Cyril Shroff is the managing partner of Cyril Amarchand Mangaldas. Cyril Amarchand Mangaldas is a law firm founded in 2015 through a split from Amarchand & Mangaldas & Suresh A Shroff & Co. They have offices in 8 cities and have more than 700 lawyers.
Read more: Cyril Shroff | The M&A king of India
He received his BA LLB, from Government Law College, Mumbai, and became Solicitor in the Bombay High Court in 1983. After his father died, he and his brother took over the firm mentioned above. They slowly rose to power, and gain a reputation among the elites. He has won accolades for his work in corporate law.
He has more than 40 years of experience in corporate and securities law, disputes, banking, bankruptcy, infrastructure, corporate governance, and more.
But, how his involvement in the SEBI help the Adani Group is still left to be explored. Although, this looks like a big web of mysteries, if not personal favors.
However, According to Reuters SEBI is examining a recent crash in shares of Adani Group and looking into any possible irregularities in a share sale by its flagship company. The central government is also in touch with SEBI and waiting for its report.
In 2013, his daughter Paridhi Shroff married Karan Adani. Karan took over the operation of Adani ports, and SEZ in 2016.
What is SEBI?
SEBI is a statutory body that regulates the functioning of the Indian capital market and it controls the trading of shares in the stock market and mutual funds. SEBI’s functions are divided into three parts protective, regulatory, and developmental work. Its main function is to protect the interests of the investors and develop the Indian capital markets by enforcing various rules and regulations from time to time. The stock market in India runs on the guidelines of this institution.
The Central Government of India nominates the chairman and 5 members of the SEBI. The Union Ministry of Finance appoints two of its officers. The Reserve Bank of India appoints one member. The central government of India nominates five members.
SEBI has the power to decide if someone commits fraud and unethical practices in the securities market. SEBI reserves the right to take legal action against any individual, corporate, or entity that violates SEBI’s rules, guidelines, and decisions. The chairman of SEBI has the authority to order ‘search and seizure operations’.
Timeline of the fall
25th January, US-based short-seller Hindenburg Research published a two-year-long investigative report, accusing the Adani Group of looting the nation. The stock prices of the Adani Group entities fell face down in the market. They have lost 60% in market value in the last five days, according to Hindustan Times. 1 Feb, Adani Group called back the FPO, after it was oversubscribed. Credit Suisse and Citibank have assigned zero lending value to Adani bonds.
- Gautam Adani slips out of list of world’s top 10 richest people
- What is short selling that erased $65 billion of Adani group in three days?
- Hindenburg reply to Adani: What has happened so far?
- Know all about Shah Dhandharia & Co, CA firm which audits Adani group
- What is Hindenburg research, and is the CIA behind it?
- Who is Nathan Anderson, person behind Adani’s Hindenburg report?
- Who is Chang Chung-Ling and, does Adani have a Chinese connection?
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