SEBI Clears Adani Group of Hindenburg Allegations, No Violations Found

SEBI has concluded its investigation into Hindenburg's allegations against the Adani Group, finding no violations of listing agreements or related party transaction rules. The Supreme Court upheld SEBI's procedures and amendments, dismissing claims of financial misconduct. Consequently, no penalties were imposed on the Adani Group.

The Securities and Exchange Board of India (SEBI) has concluded its inquiry into allegations made by US-based short seller Hindenburg against the Adani Group, determining no breaches of the listing agreement or SEBI's Listing Obligations and Disclosure Requirements (LODR) were committed.

The transactions in question, SEBI clarified, do not constitute 'related party transactions' as per the definitions before the 2021 regulations update, despite their current explicit inclusion in the guidelines. Additionally, SEBI noted that the Supreme Court dismissed challenges against the regulatory body's processes and amendments, finding no illegality in its approach.

No violations of Section 12A of the SEBI Act, nor breaches of rules pertaining to Fraudulent and Unfair Trade Practices, were identified. Conclusively, SEBI found no evidence of fraud, misrepresentation, or misappropriation of funds. As a result, no penalties have been levied against the Adani Group, and the proceedings have been formally closed without directives.

(With inputs from agencies.)