SEBI has given a clean chit to Adani Group and Chairman Gautam Adani, rejecting Hindenburg Research’s allegations of fund routing through three firmsm.
Key Highlights
- SEBI clears Adani Group and Gautam Adani of Hindenburg-linked allegations.
- Transactions did not qualify as related party dealings under earlier rules.
- Loans were repaid with interest, no fraud or fund siphoning detected.
- All proceedings against Adani Group have been dropped.
- Hindenburg’s 2021 report had triggered global scrutiny and stock volatility.
SEBI Gives Clean Chit to Adani Group
The Securities and Exchange Board of India (SEBI) has cleared Adani Group and its Chairman, Gautam Adani, of allegations made by US-based short-seller Hindenburg Research. The regulator found no evidence of fund diversion or unfair trade practices in connection with the alleged use of three companies—Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure.
In its two separate orders issued on Thursday, SEBI concluded that the transactions in question did not breach regulatory norms. At the time, such dealings with unrelated entities did not fall under the definition of related party transactions, which was only broadened after a 2021 amendment.
No Evidence of Fund Diversion
The market regulator highlighted that the loans in question were repaid with interest and that there was no siphoning of money. SEBI further noted that there was no element of fraud or any unfair trade practice involved in the dealings.
As a result, all proceedings initiated against the Adani Group have been formally dropped, bringing relief to the conglomerate that has been under the scanner since Hindenburg’s explosive report in January 2021.
Hindenburg’s Allegations
Hindenburg Research had alleged that Adani Group used the three firms—Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure—as conduits to route money within its own companies while concealing them as unrelated party transactions.
The short-seller’s report triggered intense scrutiny of the Adani Group, leading to volatility in its listed stocks and sparking political and financial debates.
What SEBI’s Decision Means
The SEBI ruling marks a significant development for Adani Group, which has consistently denied wrongdoing since the allegations first surfaced. By clearing the group and its chairman, the regulator has closed a key chapter in the controversy.
For investors and markets, this clean chit may restore confidence in Adani stocks, which had faced massive sell-offs after the Hindenburg report.