The Securities and Exchange Board of India (SEBI) is still investigating some accusations made by Hindenburg Research against the Adani Group, says a Bloomberg report. The report reiterated that the Adani Group’s “regulatory risks are not over yet.” The Bloomberg report highlighted that they have only partial relief in the SEBI’s order on Thursday.
The report stated that SEBI is still investigating some accusations against the Adani Group. The investigations include whether the Adani Group has followed the minimum public shareholding guidelines of SEBI. The report added that SEBI is probing at least three or four investigations against the conglomerate.
The Bloomberg report added that SEBI is yet to receive responses from some stakeholders who are related to these cases. Further, there is no indication whether Adani will face any fines or regulatory censure on the pending matters, but it is likely that there will be more SEBI orders on the Adani Group.
On Thursday, SEBI concluded in its order that the Adani Group committed no fraud, as there were no unfair trade practices, and the company did not siphon off any funds. Further, the order stated that there were no violations in transactions with unrelated parties. SEBI said that there will be no penalty or proceedings against Gautam Adani and his companies in the said matters.
Adani ask Hindenburg for an apology
After the SEBI’s order, Gautam Adani said in a tweet that those who spread a false narrative against the company should apologise.
He wrote, “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 added that he deeply feels the pain of the investors who lost money because of this fraudulent and misleading report. Those who spread false narratives owe the nation an apology, Adani said.
SEBI probe on Adani Group
The apex court of India asked the SEBI to probe the accusations made by US short-seller Hindenburg Research. The investigation’s scope spanned from potential violations of minimum public shareholding rules in Adani Group companies, stock price manipulation through the foreign portfolio investment route and allegations of insider trading.
Bloomberg elaborated on the issue as said that, as per the SEBI report in August 2023, the investigation included 13 matters on related-party transactions. SEBI’s order on Thursday cleared Adani on two of these related-party transaction investigations.
US probe against Adani
While the Indian market regulator has cleared Gautam Adani and his conglomerate of most of the allegations made by Hindenburg Research, the billionaire remains indicted by the US Department of Justice for the alleged $250 million bribery scheme since last year.
Report adds that Adani’s efforts to get those charges resolved and make a deal with US prosecutors have stalled in recent months in the wake of the India-US trade impasse and other geopolitical headwinds.