SEBI Rejects Hindenburg Allegations, Clears Adani Group Companies of Wrongdoing

The Securities and Exchange Board of India (SEBI), which oversees the Indian market, has rejected claims made by US short seller Hindenburg Research against Gautam Adani, the chairman of the Adani Group, and the group’s businesses, Adani Enterprises, Adani Ports, and Adani Power.

The organisation was accused by Hindenburg Research in January 2023 of using three businesses—Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure—to transfer funds between Adani group enterprises. In two judgements outlining its findings, SEBI stated that there were no infractions and pointed out that the transactions occurred during a period when dealings with unrelated parties did not count as related party dealings. Later, the definition was modified.

According to a report by news agency PTI, SEBI halted all of its actions against the Adani Group, stating that all loans were paid back, the money was used for the authorised purposes, and there was no evidence of fraud or unfair trade practices.

Gautam Adani Responds to the Development

Gautam Adani stated in a post on September 18 that the SEBI’s conclusions confirmed the short seller’s unfounded allegations. In a post on X, he stated that following a thorough examination, SEBI has confirmed what the organisation had consistently said: that the Hindenburg allegations were unfounded.

The Adani Group has always been known for its honesty and openness.The company is extremely sorry for the investors who lost money as a result of this dishonest and self-serving report. The country deserves an apology from those who propagate incorrect information.The Adani Group is steadfast in its dedication to nation-building, Indian institutions, and Indian citizens. Jayate Satyamev! JAI HIND!

Former SEBI’s Executive Director Backs Adani Group

Former SEBI executive director JN Gupta told NDTV that nearly everyone had progressively come to the conclusion that “the Adanis were not on the wrong side” in the years since the Hindenburg report was made public. According to Gupta, this order definitively establishes that the Hindenburg Report was untrue.

This reveals two things: first, that SEBI’s system has to be improved because it has taken more than two years to reach this judgement, and second, that it believes a lot of things without supporting evidence. The report caused panic among retail investors, who liquidated their holdings and suffered losses.

The short seller’s claims have been repeatedly denied by the Adani Group, whose founder, Nate Anderson, declared in January that it will be shut down. Gautam Adani has stressed the significance of “rising stronger after every fall” in his remarks regarding Hindenburg’s later impacted jobs.