The Securities and Exchange Board of India (SEBI) has dismissed allegations made by US short seller Hindenburg Research against Adani Group Chairman Gautam Adani and several group companies, including Adani Enterprises, Adani Ports, and Adani Power.
The market regulator, in two separate orders, concluded that there were no violations of norms in the financial dealings flagged by Hindenburg in January 2023. The report had alleged that the Adani Group used firms such as Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure to route funds between its companies.
SEBI noted that the transactions in question took place when dealings with such entities did not qualify as related-party transactions, as the definition was amended only later. It further observed that all loans had been repaid, funds were used for their intended purpose, and there was no evidence of fraud or unfair trade practice. On this basis, the regulator closed all proceedings against the group, according to PTI.
Gautam Adani welcomes SEBI order
Reacting to the development, Gautam Adani said the findings reaffirmed the group’s long-standing position that Hindenburg’s allegations were baseless.
“After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology,” Mr Adani posted on X.
He added that the group’s commitment to India’s institutions and nation-building remains “unwavering”.
Experts say findings put controversy to rest
Former SEBI executive director JN Gupta told NDTV that the order “puts a final seal” on the controversy. “This exposes a couple of things – that we tend to believe allegations without facts, and that our system needs to move faster. Retail investors who panicked because of the report and liquidated their holdings have lost out,” he said.
The Adani Group had consistently denied wrongdoing since the release of the Hindenburg report, which triggered a sharp sell-off in Adani stocks in early 2023. The short seller’s founder Nate Anderson had announced earlier this year that his firm would be disbanded.
Mr Adani, in previous comments, had described the Hindenburg report as part of a “short-selling attack” timed ahead of the company’s Follow-on Public Offer (FPO). He said it was “a calculated move” designed to cause maximum damage and amplified by “vested interests” in the media.