The Securities and Exchange Board of India (SEBI) has given a clean chit to the Adani Group and its associated entities in the Hindenburg case, ruling that the allegations “are not established.”
In its order issued on Thursday, SEBI said the proceedings were closed without directions, as the flagged transactions were genuine business dealings and not fraudulent or in violation of related party transaction (RPT) disclosure norms. The regulator stated that since no liability was established, the question of penalty did not arise.
SEBI clarified there was no breach of Listing Obligations and Disclosure Requirements (LODR) by Adani, rejecting claims of concealed related party transactions. It further explained that the broader definition covering indirect dealings came only after the 2021 amendment to LODR norms and could not be applied retrospectively.
The order also noted that the loans and fund movements cited in the allegations had been fully repaid and did not amount to undisclosed related party transactions or market manipulation.
The controversy stemmed from a January 2023 report by US-based Hindenburg Research, which accused the Adani Group of stock manipulation, accounting irregularities, and hiding related-party dealings through shell companies. The report triggered a massive sell-off, erasing over $100 billion in Adani’s market value, and led the Supreme Court to direct SEBI to conduct an inquiry.
