Adani-Hindenburg row: SEBI submits report, tells SC it has completed probe; check details

The Securities and Exchange Board of India has completed its probe into Adani Group companies. The market regulator told the Supreme Court that the investigation spurred by the explosive Hindenburg report had been concluded and action has been recommended in some cases for passing orders.

While the SEBI filing did not outline its findings, the regulatory body said it would “take appropriate action based on outcome of the investigations”. According to a Reuters report quoting the document, SEBI is investigating 24 transactions involving the Adani group's listed companies. Of these, findings in 22 were now final in nature. The court filing also outlined the steps taken by SEBI during the probe – including on related party transactions. 

The apex court is scheduled to hear the case on August 29.

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SEBI reportedly examined 13 Adani group dealings for possible violations of related-party transaction rules. The regulator also said its investigation on some offshore deals covered 12 foreign portfolio investors who were public shareholders of Adani group companies.

However some of these entities are located in tax haven jurisdictions.

“Establishing the economic interest shareholders of the 12 FPIs remains a challenge,” Reuters quoted the regulator as saying. 

SEBI said that it has sought information from five foreign countries on this issue.

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In January this year the a report by US-based short seller Hindenburg Research had accused the Gautam Adani-led conglomerate of widespread corporate fraud and stock price manipulation. While the Adani Group denied any wrong doing, the allegations had led to a massive rout – wiping more than $150 billion in market value from its listed companies at one point. The Supreme Court had ordered Sebi to submit an investigative report after the broadside.

Sebi has been investigating if there was a violation of rules concerning minimum public shareholding, related party transactions and manipulation of stock prices. It has also delved into the rout in Adani Group stocks following Hindenburg’s report.

(With inputs from agencies)