SEBI completes final investigation into 22 of 24 Adani Group's transactions

Capital markets regulator, SEBI (Securities and Exchange Board of India), on Friday, informed the Supreme Court that it has concluded its investigation into alleged securities law violations by the Adani Group, necessitated following the Hindenburg report alleged serious violations falling under its purview.

SEBI revealed that it has recommended action in some cases and that 22 out of the 24 transactions involving Adani Group's listed companies have reached a final verdict. While the specific findings of the investigation were not disclosed in the court filing, SEBI said that it would take appropriate action based on the outcomes. The case is scheduled to be heard in the Supreme Court (SC) on August 29, 2023.

In a previous application filed on August 14, SEBI had requested an additional 15 days to submit the probe report on the Adani Group. At that time, SEBI indicated that it had already completed its investigation into 17 out of the 24 transactions under scrutiny.

In January 2023, Hindenburg Research made public its bearish stance against the listed companies affiliated with the Adani Group. In a report it released, Hindenburg Research levelled accusations against the conglomerate, alleging that it had been involved in what it described as an extensive "stock manipulation and accounting fraud scheme" spanning several decades.

The Adani Group vehemently denied these allegations and characterized them as a malicious and unfounded attack. Gautam Adani, the group chairman has repeatedly called the report “a combination of targeted misinformation and discredited allegations” and said that the company remains confident of its “governance and disclosure standards” amidst the SEBI probe. 

The investigation into the Adani Group has been closely watched by the financial community and investors. It revolves around allegations of violations of securities laws and has raised significant interest due to the prominence of the Adani Group in India's corporate landscape.

The outcome of the investigation and any subsequent actions taken by SEBI will have important implications for the Adani Group and the broader Indian business community. SEBI's commitment to act based on the investigation's findings suggests that this case is far from over, and its resolution will likely have a lasting impact on corporate governance and regulatory oversight in India.

Investors and industry observers are eagerly awaiting the SC's hearing on August 29, which may shed more light on the specifics of the investigation and the potential ramifications for the Adani Group.