In a post on the social media platform X, Gautam Adani wrote, “After an exhaustive investigation, Sebi has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group.”
He added, “We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology. Our commitment to India’s institutions, to India’s people and to nation building remains unwavering.”
Sebi order on Hindenburg allegations
In two official filings issued on Thursday, September 18, the markets regulator refuted Hindenburg Research’s claims made over two years ago about stock manipulation against Gautam Adani and his companies.
Sebi said it was unable to ‘establish’ the allegations against Adani and the Adani Group companies, including Adani Ports and SEZ Ltd and Adani Power Ltd. As the allegations were not proved, no penalty will be levied on Gautam Adani and his group, the market regulator noted.
“Accordingly, having considered the matter holistically, I find that the allegations made against the noticees in the show cause notices are not established. Considering the above, the question of devolvement of any liability on the noticees does not arise, and hence the question of determination of quantum of penalty also does not require any deliberation,” said Kamlesh C. Varshney, whole-time member at Sebi.
Hindenburg’s claims
On 24 January 2023, Hindenburg Research released a report alleging that Adani Group’s flagship companies, Adani Enterprises Ltd and Adani Power Mundra (now Adani Power), received funding from Milestone Tradelinks Pvt. Ltd and Rehvar Infrastructure Pvt. Ltd via Adani Infra (India) Ltd in 2020-21. The short seller raised concerns about the origin of the funds within the conglomerate.
(This is a developing story. Check back for further updates.)
