(source : ANI) ( Photo Credit : ani)
Adani Group Gets Clean Chit from SEBI in Hindenburg Case
Mumbai’s Adani Group just scored a big win against those tough allegations from US short-seller Hindenburg Research. The Securities and Exchange Board of India (SEBI), India’s market watchdog, wrapped up its probe and found no wrongdoing. This clears the air for the conglomerate after a rollercoaster ride that shook investor confidence.
The whole drama kicked off with Hindenburg’s bombshell report back in January 2023. It accused Adani companies of using two private firms—Milestone Tradelinks and Rehvar Infrastructure—as a cover for shady deals. Hindenburg claimed these were hidden related party transactions (RPTs) that should’ve been disclosed to shareholders, hinting at fraud and fund routing.
But SEBI’s deep dive says otherwise. The regulator looked into deals involving listed Adani firms like Adani Ports and Special Economic Zone, Adani Power, and Adani Enterprises. They checked transactions from 2018 to 2023, following a nudge from the Supreme Court.
Here’s the key twist: Under the rules back then (LODR Regulations), related party transactions only covered direct links between a company and its affiliates. SEBI ruled that Milestone and Rehvar weren’t "related parties" to Adani firms in a legal sense, even with some business ties. A 2021 rule change tightened things up to include indirect deals, but SEBI stressed it only applies going forward—not retroactively to old transactions. Applying it backward? Not allowed, they said.
On the money side, SEBI found everything above board. The loans—running into thousands of crores—got fully repaid with interest long before the probe started. No signs of money siphoning, fund diversion, or harm to shareholders. This knocks out any fraud claims under SEBI’s PFUTP rules.
The relief is huge for Adani Group, especially after Hindenburg’s report tanked their market value. SEBI has now cleared everyone involved, including Chairman Gautam Adani and his brother Rajesh Adani, from any blame.
Adani Group’s statement called out the Hindenburg claims as false, and this SEBI order backs that up. It’s a fresh start for the group amid ongoing scrutiny in the Indian stock market. Investors and watchers will keep an eye on how this plays out for Adani stocks and SEBI regulations moving forward.
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