SEBI Clears Adani Group of Hindenburg Allegations, Says No Wrongdoing Found

The Securities and Exchange Board of India (SEBI) has given a clean chit to the Adani Group and its chairman, Gautam Adani, dismissing allegations made by US-based short-seller Hindenburg Research.

In January 2023, Hindenburg had released a damning report claiming that the Adani Group secretly routed funds through three companies to hide related-party transactions. The report triggered a massive sell-off in Adani stocks, wiping out over $100 billion in market value at one point.

On Thursday, SEBI released two detailed orders stating that its investigation found no violations. The regulator clarified that the transactions flagged by Hindenburg did not fall under the definition of “related party” dealings at the time they were made. That definition was only expanded later in 2021.

SEBI also observed that the loans in question were fully repaid with interest, adding that there was no siphoning of funds, no fraud, and no unfair trade practices. It further ruled out allegations of insider trading, market manipulation, or violations of public shareholding norms.

Board member Kamlesh C Varshney explained in the orders that because the transactions were not legally classified as related party dealings back then, there was no breach of disclosure rules.

“After a thorough investigation, SEBI has concluded there is no basis to hold the Adani entities or their executives liable or to impose penalties,” the orders said.

The clean chit comes after months of scrutiny, speculation, and pressure on the regulator. A Supreme Court-appointed expert committee had earlier reached a similar conclusion, saying there was no prima facie evidence of wrongdoing.

The Adani Group, which has consistently denied all the charges, has seen its shares bounce back after the initial market crash. On Friday, Adani Enterprises, Adani Power, and Adani Green Energy stocks are expected to remain in focus.

Also Read: Hindenburg Claims $310 Million Linked To Adani Frozen In Swiss Banks