New Delhi, Sept 18: In a major relief to the Adani Group, the Securities and Exchange Board of India (SEBI) has dismissed allegations of stock manipulation and undisclosed related-party dealings raised in the 2023 Hindenburg Research report. In its final orders issued on Thursday, SEBI said the transactions flagged did not qualify as related-party transactions under rules prevailing at the time and found no evidence of fund diversion, insider trading, or fraudulent practices.
The regulator noted that the loans and fund flows examined were genuine, interest-bearing business dealings that were duly repaid. As a result, SEBI dropped all proceedings against Adani companies and their officers.
Adani Group chairman Gautam Adani welcomed the verdict, saying he “deeply felt the pain” of investors who lost money when the Hindenburg allegations triggered a massive sell-off in early 2023.
While the clean chit strengthens the group’s legal standing and lifts a major overhang on investor confidence, analysts say it does not fully settle broader concerns. Much of SEBI’s reasoning hinged on narrower definitions of related parties that were in force at the time, raising debate about whether disclosure norms need to be tightened to reflect global best practices.
Critics also point out that while the Adani Group may have cleared regulatory scrutiny, questions of corporate governance and investor trust remain. The episode is expected to fuel calls for stronger disclosure rules and more transparent oversight of complex corporate structures.
For now, the verdict bolsters Adani’s prospects in markets, but experts caution that investor confidence will ultimately hinge not just on legal compliance but also on higher standards of governance and transparency.
