Guwahati: Adani Group Chairman Gautam Adani on Thursday urged those who promoted Hindenburg Research’s “false narratives” to issue a national apology.
Earlier in a major development, the Securities & Exchange Board of India (Sebi) on Thursday sent a clean chit to the Adani group.
It dismissed allegations of stock manipulation made by US short-seller Hindenburg Research against Gautam Adani and his group companies, including Adani Enterprises, Adani Ports, and Adani Power.
Hindenburg, in January 2023, alleged that the Adani Group used three companies — Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure — as conduits to route money between Adani group firms.
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The claim was that this helped Adani avoid rules on related party transactions, possibly misleading investors.
Sebi found no violations, “noting that at the time such transactions with unrelated parties did not qualify as related party dealings (the definition was expanded only after a 2021 amendment).”
It stated that the loans were repaid with interest, no funds were siphoned off, and hence there was no fraud or unfair trade practice.
“Having considered the matter holistically, I find that the allegations made against Noticees in the SCN (show-cause notice) are not established. Considering the above, the question of devolvement of any liability on Noticees does not arise and hence the question of determination of quantum of penalty also does not require any deliberation. I, therefore, in exercise of the powers conferred upon me under section 19 of the SEBI Act, 1992 read with sub-sections (1) and (4) of section 11, subsection (4A) of section 11 and sub-sections (1) and (2) of section 11B (1) of the SEBI Act, 1992, hereby dispose of the instant proceedings against Noticees without any direction,” Kamlesh C Varshney, whole-time member of Sebi, said in his two separate similarly worded orders on proceedings against the Adani group entities.
In the orders, Sebi has given reprieve to Adani Ports & Sez, Adani Power, Adani Enterprises, as well as Gautam Adani, Rajesh Adani, and three others, from Hindenburg’s allegations.