7 Adani companies get SEBI notice in Hindenburg case

Tribune News Service

New Delhi, May 3

Seven of the 10 listed firms of Adani group have received show-cause notices from the Securities and Exchange Board of India (SEBI) for alleged violation of related party transactions and non-compliance with listing regulations, the companies said in their regulatory filings to the stock exchanges.

Say complying with rules, regulations

• Denying the charges of violation of party transactions and non-compliance with listing regulations, Adani firms have said the transactions were in full compliance with the prevailing laws and regulations
• The SEBI notices are part of an investigation that followed Hindenburg Research making allegations of corporate fraud and stock price manipulation against Adani group in January 2023

While group’s flagship Adani Enterprises Ltd, renewable energy firm Adani Green Energy Ltd (AGEL) and city gas distributor Adani Total Gas Ltd said SEBI sent notices of their parent or holding company controlled by conglomerate’s chairman Gautam Adani, ports company Adani Ports & Special Economic Zone, Adani Power, electricity transmission firm Adani Energy Solutions, and commodities firm Adani Wilmar said they have received SEBI notices.

Making the disclosure as part of notes to their respective January-March quarter and 2023-24 financial results statements, all the firms in almost identical statements said there is no material non-compliance with applicable laws and regulations and no material consequential effect.

However, auditors of the companies, except those for Adani Green Energy, Adani Total Gas Ltd and Adani Wilmar, issued a qualified opinion on the financial statements, implying that the outcome of the SEBI investigation may have a bearing on the financial statements in the future.

The SEBI notices are part of a probe that followed US short-seller Hindenburg Research making damning allegations of corporate fraud and stock price manipulation against the Adani Group in January 2023.

A show-cause notice is not an indictment and seeks an explanation from entities as to why legal action should not be taken against them.

The Supreme Court last year observed that SEBI was investigating the matter while also constituting an Expert Committee to investigate as well as suggest measures to strengthen existing laws and regulations. (With agency inputs)

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