SEBI clean chit to Adani Group in Hindenburg case

The Securities and Exchange Board of India (Sebi) has cleared the Adani Group and its founder Gautam Adani of stock manipulation allegations made by US-based short seller Hindenburg Research in January 2023. 

In two separate orders published on its website on Thursday, Sebi noted that the allegations of insider trading, market manipulation and violations of public shareholding norms were found to be unsubstantiated. The regulator said it found no evidence that the conglomerate used related parties to route funds into its listed companies.

Hindenburg Research, which has since shut down, in its explosive report in 2023, accused the Adani Group of using offshore tax havens and using entities such as AdaniCorp Enterprises, Milestone Tradelinks and Rehvar Infrastructure as conduits to route funds improperly.

“...having considered the matter holistically, I find that the allegations made against noticees are not established...I hereby dispose of the instant proceedings against noticees,” said Kamlesh C Varshney, a Sebi member, in the two orders.

Buoyed by the Sebi clean chit, Adani said those who spread false narratives using Hindenburg Research's 'fraudulent and motivated' report owed the nation an apology. In a post on X accompanied by the Tricolour, Adani said the Sebi orders had reaffirmed what his group had always maintained -- "that the Hindenburg claims were baseless".

However, according to reports, the Sebi orders do not absolve the conglomerate of other allegations of large-scale corporate fraud levelled by Hindenburg. The Adani Group continues to face scrutiny, including a separate investigation by US federal prosecutors over an alleged $250 million bribery scheme, for which Gautam Adani was indicted in November 2024.

The Hindenburg report sparked a fierce political battle in 2023, pitting the ruling BJP against a united opposition. Congress leader Rahul Gandhi demanded a joint parliamentary committee probe into alleged cronyism between the Modi government and Adani. Trinamool Congress MP Mahua Moitra amplified these demands, questioning Sebi’s oversight. CPM, AAP and other opposition parties staged protests nationwide.

The BJP dismissed the report as a “foreign plot” to derail India’s economic growth. The party highlighted Sebi's ongoing investigation and Adani’s role in national infrastructure, urging critics to await regulatory findings. Parliamentary sessions throughout 2023 saw repeated disruptions as opposition MPs pushed for debates, met with government resistance.

Tensions escalated in August 2024 when Hindenburg targeted SEBI chairperson Madhabi Puri Buch, alleging conflicts of interest. The Opposition, particularly the Congress and TMC, demanded Buch’s resignation. The BJP defended Buch, terming the claims baseless.