The Securities and Exchange Board of India (SEBI) has cleared the Adani Group and its associated entities of all allegations made in the Hindenburg case, stating that the charges “are not established.”
In its order issued on Thursday, SEBI said the proceedings were disposed of without directions, as the alleged transactions were found to be genuine business dealings and not fraudulent or violative of related party transaction (RPT) disclosure norms.
“Considering the above, the question of devolvement of any liability on Noticees (Adani Group and associated companies) does not arise and hence the question of determination of quantum of penalty also does not require any deliberation,” the order stated.
The regulator further noted that there was no breach of Listing Obligations and Disclosure Requirements (LODR). It rejected the contention that Adani had concealed related party transactions, clarifying that the broader definition covering indirect transactions came only with the 2021 amendment to LODR norms and could not be applied retrospectively.
SEBI also found that the loans and fund movements flagged in the allegations had been fully repaid and did not amount to undisclosed related party transactions or fraudulent market practices.
The case stemmed from a January 2023 report by US-based Hindenburg Research, which accused the Adani Group of accounting irregularities, stock manipulation, and hiding related-party transactions through shell companies. The report led to a massive sell-off in Adani stocks, wiping out more than $100 billion in market value, and prompted the Supreme Court to direct SEBI to investigate.
-IANS