The Securities and Exchange Board of India (SEBI) has dismissed all allegations against the Adani Group and its Chairman Gautam Adani made by US-based Hindenburg Research. This decision comes after a thorough investigation by SEBI, which found no evidence of wrongdoing.
Background of the Allegations
In January 2023, Hindenburg Research accused the Adani Group of manipulating stock prices and hiding related-party transactions through three companies: Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure. Hindenburg claimed the group routed Rs 620 crore (about $87.4 million) to hide loans and avoid disclosure rules, potentially misleading investors.
SEBI’s Findings in Brief
SEBI’s investigation concluded that:
- At the time of the transactions, such dealings with unrelated parties were not classified as related-party transactions under SEBI rules.
- All loans were genuine, interest-bearing, and fully repaid.
- No funds were siphoned off or misused.
- There was no evidence of fraud or unfair trade practices.
- The 2021 amendment expanding related-party transaction definitions was not applicable retroactively.
Thus, SEBI found no violations and dropped all proceedings against the Adani Group.
Response from Gautam Adani
Gautam Adani welcomed the SEBI ruling, calling the allegations “baseless.” Posting on social media, he said the group has always stood for transparency and integrity. He expressed sympathy for investors who lost money but emphasized the group’s commitment to India’s institutions and nation-building.
Impact on Market and Investors
Following Hindenburg’s claims in early 2023, the Adani Group’s market value fell sharply. However, SEBI’s clean chit now offers much-needed clarity and reassurance to investors and the market.
What This Means for India
The SEBI verdict highlights the importance of clear regulations and fair investigations in India’s financial markets. It also reassures foreign and domestic investors of the regulator’s ability to resolve complex cases fairly. The Adani Group remains a major player in India’s economy, and this decision strengthens its position.
