SEBI clears Adani Group entities of Hindenburg allegations

The Securities and Exchange Board of India (SEBI) has disposed of proceedings against Adani Ports & Special Economic Zone Limited, Adani Power Limited, and other Adani Group entities, finding no violations in relation to Hindenburg Research allegations. The investigation focused on financial transactions and related party disclosures between 2012-13 and 2020-21.

SEBI concluded that the impugned transactions did not qualify as "related party transactions" under the Listing Agreement or LODR Regulations applicable during the investigation period. The regulator emphasized that the 2021 amendment to the LODR Regulations, which broadened the definition of "related party transaction," was prospective and could not be applied retrospectively.

Furthermore, SEBI found no evidence of siphoning off funds, diversion of funds, or loss to investors. All loans, including interest, were repaid before the investigation began. Consequently, allegations of fraud or unfair trade practices under the PFUTP Regulations were not established, leading to the disposal of the proceedings.