Daijiworld Media Network - Mumbai

Mumbai, Sep 18: The Securities and Exchange Board of India (SEBI) has officially exonerated the Adani Group and its affiliated entities from all allegations leveled by US-based Hindenburg Research, marking the end of a high-profile investigation that had rocked Indian financial markets.

In its order issued Thursday, SEBI stated that the matter was examined in a comprehensive manner and concluded that the accusations made by Hindenburg were “not established.” As a result, no liabilities were assigned to the Adani Group, and no penalties were considered necessary. The proceedings have been disposed of without any further directives.

The regulator clarified that the transactions under scrutiny were determined to be genuine business activities and did not breach related party transaction (RPT) disclosure norms or involve fraudulent conduct. SEBI also found no violations of its Listing Obligations and Disclosure Requirements (LODR), which govern transparency and corporate governance practices for listed companies.

One of the key claims made in the Hindenburg report was that the Adani Group concealed related-party dealings through complex structures. However, SEBI pointed out that the broader definition of related parties—especially covering indirect relationships—was only introduced in 2021 and cannot be applied retrospectively. Applying the updated rules to past transactions, the regulator emphasized, would not stand up to legal scrutiny.

Additionally, SEBI confirmed that loans and fund transfers flagged in the report were either repaid or disclosed as per applicable norms, and therefore did not amount to fraudulent or manipulative practices in the securities market.

The controversy began in January 2023, when Hindenburg Research released a damning report accusing the Adani conglomerate of financial misconduct, including stock manipulation, accounting irregularities, and the misuse of shell companies to obscure ownership and related-party links. The report triggered a massive sell-off in Adani Group stocks, wiping out over $100 billion in market value.

Following the market turmoil, the Supreme Court of India directed SEBI to investigate the claims, leading to a months-long probe.

In a surprising turn of events, Hindenburg Research itself faced mounting scrutiny over its aggressive short-selling strategies and was later forced to shut down operations amid criticism from global financial watchdogs and media.

With SEBI’s final order now in place, the Adani Group has been formally cleared of wrongdoing, bringing a close to one of the most closely watched corporate investigations in recent Indian market history.