Investigation continues into over a dozen claims made against Adani, according to insiders
The Securities and Exchange Board of India (SEBI) is currently investigating more than a dozen allegations that the Adani Group and its offshore funds have broken securities regulations. The investigations, which began in 2023, were prompted by now-defunct Hindenburg's accusations of improper use of tax havens and stock price manipulation.
One of the pending cases involves allegations that Adani Enterprises, Adani Ports, Adani Energy, and Adani Power wrongfully categorized certain shareholders as public. The companies reported in their financial statements in July and August that the watchdog was looking into these allegations.
SEBI dismissed two specific allegations made against the Adani Group by U.S. short-seller Hindenburg Research, one of stock manipulation and the other of non-disclosure of related party transactions. However, SEBI continues to review over a dozen other allegations related to potential securities law violations by the Adani Group and certain offshore funds, with final decisions on these cases still pending.
Reuters reported in April that around 30 Adani group entities have applied to settle some of these regulatory charges. The stocks of all nine listed Adani Group companies rose on Friday following the regulator's dismissals the previous day.
The Adani Group, which includes Adani Ports, Adani Power, and Adani Enterprises, did not immediately respond to emailed questions about the report of continuing investigations. The group, owned by billionaire Gautam Adani, has regularly dismissed all the allegations by Hindenburg as baseless.
Adani Enterprises saw a 6% increase in shares, while Adani Power experienced a 12.7% jump in shares following the dismissals. The Adani Group has not yet publicly commented on the ongoing investigations by SEBI. SEBI's communications department also did not immediately respond to requests for comment.
It is important to note that no further action will be taken on the closed investigations, and the Adani Group companies and Gautam Adani have been found innocent of the allegations of stock manipulation, non-disclosure, and related-party transaction violations brought by Hindenburg Research. However, SEBI continues to review over a dozen other allegations, and the investigations into the Adani Group are ongoing.
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