Indian markets regulator SEBI on Thursday dismissed allegations of stock manipulation made by U.S. short-seller Hindenburg Research against Adani Group.
SEBI said that the allegations against the Adani Group could not be established. The market regulator disposed of any possibility of a penalty and proceedings against Gautam Adani, Rajesh Adani, Adani Ports and Adani Power.
In two separate orders, the regulator found no violations, noting that at the time such transactions with unrelated parties did not qualify as related party dealings (the definition was expanded only after a 2021 amendment).
It also noted that the loans were repaid with interest, no funds were siphoned off, and hence there was no fraud or unfair trade practice.
Accordingly, all proceedings against the Adani Group have been dropped.
Hindenburg, in January 2021, alleged that the Adani Group used three companies — Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure — as conduits to route money between Adani group firms.
The claim was that this helped Adani avoid rules on related party transactions, possibly misleading investors.