Adani firms settle SEBI cases linked to Hindenburg report for Rs 1.5 crore

Five companies of the Adani Group on Tuesday settled adjudication proceedings launched by the Securities and Exchange Board of India, arising from a report by American short-seller Hindenburg Research, by paying a combined amount of Rs 1.5 crore, Live Law reported.

The proceedings involved the conglomerate’s flagship company Adani Enterprises, and subsidiaries Adani Total Gas, Adani Green, Adani Energy Solutions, formerly known as Adani Transmission, and AWL Agri Business Limited, which was previously named Adani Wilmar.

The market regulator had examined allegations pertaining to non-disclosure of alleged related-party transactions and problems of corporate governance that Hindenburg had claimed. The regulator had also examined possible violations of the 2015 SEBI Listing Obligations and Disclosure Requirements Regulations and the equity listing agreement, Live Law reported.

In January 2023, Hindenburg Research published a report accusing the Adani Group of pulling off the “largest con in corporate history” through accounting fraud, money laundering and stock price manipulation.

The Adani Group rejected the allegations, but the report pummelled the stocks of its listed companies and wiped out more than $100 billion of investors’ money at the time. It also led to regulatory and legal investigations against the conglomerate.

The Securities and Exchange Board of India had begun adjudication proceedings based on the findings of the check it had carried out.

The Adani Group firms proposed to...

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