Sebi dismisses Hindenburg allegations against Adani – Rediff Money
The Indian markets regulator, Sebi, has recently cleared Gautam Adani and his conglomerate of stock manipulation allegations brought forth by US short-seller Hindenburg Research. After conducting a thorough investigation, Sebi found no evidence to support the claims of insider trading, market manipulation, or violations of public shareholding norms against the Adani Group.
In two detailed orders, Sebi addressed the allegations made by Hindenburg against Adicorp Enterprises Pvt Ltd, Milestone Tradelinks Pvt Ltd, and Rehvar Infrastructure Pvt Ltd, suggesting they were used as channels to funnel funds from various Adani Group companies into publicly listed entities such as Adani Power Ltd and Adani Enterprises Ltd. However, Sebi found no violations of its disclosure norms as the transactions between these entities and the Adani Group did not meet the criteria for related party transactions, as stated by Sebi board member Kamlesh C Varshney in the orders.
Sebi also ruled out any violations related to substantial acquisition of securities or control that could deceive investors, ultimately concluding that there was no justification for assigning blame or imposing sanctions on the Adani entities or their executives.
The regulatory clearance provided by Sebi comes after the Adani Group weathered significant scrutiny and speculation sparked by Hindenburg’s incriminating report in January 2023. The report led to a sharp decline in the stock prices of listed Adani Group companies, resulting in a collective loss of more than USD 150 billion in market value at its lowest point.
In response to the allegations, the Adani Group vehemently denied any wrongdoing articulated in the Hindenburg report. Despite the initial stock downturn, the Adani Group managed to recover most of its losses before succumbing to a broader market downturn.
Furthermore, an expert panel appointed by the Supreme Court had previously echoed Sebi’s findings, noting a lack of prima facie evidence to support the allegations leveled against the Adani Group.
In conclusion, Sebi’s thorough investigation and subsequent clearance of Gautam Adani and his conglomerate from stock manipulation accusations have brought a sense of relief and vindication to the Adani Group amidst a turbulent period of uncertainty and scrutiny.