Date: 18.09.2025
Citation: WTM/KV/CFID/CFID-SEC1/31672/2025-26
Coram: KAMLESH C. VARSHNEY (Whole Time Member -SEBI)
In a significant development, the Securities and Exchange Board (SEBI) has given a clean chit to Adani Group and its Chairman Gautam Adani in respect of allegations made by US-based short seller-Hindenburg Research.
- In January 2023, US-based Hindenburg Research accused the Adani Group of stock price manipulation and corporate malpractices.
- The regulator said there was no breach of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, since the deals in question did not qualify as related party transactions.
- SEBI held that there was no siphoning or diversion of funds, all money was returned with interest before investigation began, and the transactions could not be classified as unfair trade practices. SEBI clarified that the 2021 amendment to LODR, which widened the scope of “related party transactions,” was substantive and could not apply retrospectively.
- In May 2023, the Hon’ble Supreme Court appointed a panel which also found no prima facie “regulatory failure” on SEBI’s part. In Jan 2024, the Hon’ble Supreme Court refused to order a CBI/SIT probe, saying there was no reason to doubt SEBI’s investigation.
