The Securities and Exchange Board of India (Sebi) on Thursday gave a clean chit to the Adani Group and its chairman Gautam Adani, dismissing allegations made by US-based short seller Hindenburg Research of using shell entities to hide related party transactions.
In two separate orders, Sebi concluded that no breach of regulations had taken place. The regulator clarified that the entities involved in the questioned transactions did not qualify as “related parties” under the definition applicable at the time, which was only broadened after a 2021 amendment. Sebi further noted that loans routed through Adicorp Enterprises, Milestone Tradelinks and Rehvar Infrastructure had been repaid with interest, with no evidence of funds being siphoned off or any unfair trade practices.
Hindenburg’s January 2023 report had accused the Adani Group of using obscure intermediaries to transfer funds within its companies, thereby bypassing disclosure rules and misleading investors. The report triggered a sharp global sell-off in Adani stocks, wiping out billions in market value and sparking a wider debate on corporate governance in India.
Sebi’s latest ruling brings closure to one of the most high-profile corporate controversies in recent years, easing concerns over regulatory scrutiny. The watchdog concluded that the transfers and loans in question were genuine commercial transactions and did not fall foul of disclosure norms.
Shares of Adani Group companies rallied strongly in Friday’s early trade following the Sebi clearance. Adani Total Gas rose by 10%, Adani Power gained 7% and touched a fresh 52-week high of ₹686.95, while Adani Green Energy advanced 5% before settling around 3% higher intraday. Adani Enterprises and Adani Ports climbed 4.22% and 2.22% respectively, with cement subsidiaries ACC and Ambuja Cement adding 1% each.
Reacting to the ruling, Gautam Adani posted on X: “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.” He also said the conglomerate “deeply feels the pain of the investors who lost money because of this fraudulent and motivated report,” adding that “those who spread false narratives owe the nation an apology.”