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Informist, Thursday, Sept. 18, 2025

--SEBI says Hindenburg's allegations against Adani cos not established

--SEBI disposes of matter vs Adani cos, executives over Hindenburg's claims 

MUMBAI – The Securities and Exchange Board of India Thursday disposed of US short-seller Hindenburg Research's accounting manipulation claims against Adani group companies. There is no violation of SEBI's listing norms as the impugned transactions do not qualify as 'related party transactions', the market regulator said in a final order. 

In January 2023, Hinenburg Research had alleged that Adicorp Enterprises Pvt. Ltd., Milestone Tradelinks Pvt. Ltd. and Rehvar Infrastructure Pvt. Ltd. were used as conduit entities to route funds from various Adani group companies to fund some of the conglomerate's listed firms. The series of allegations from accounting fraud to stock market allegations had axed shares prices of the group's listed entities in 2023.

The regulator said findings of the investigation showed that the group's listed company Adani Ports and Special Economic Zone Ltd. transferred funds as loans to Adicorp Enterprises, which in turn transferred funds as loans to another listed player, Adani Power. Subsequently, Adani Power repaid the loans to Adicorp Enterprises along with with interest, which in turn repaid the loans to Adani Ports with interest, SEBI said.

The ports company had also transferred funds as loans to Adani Power and Adani Enterprises through Milestone Tradelinks and Rehvar Infrastructure, which were also repaid along with interest. Hindenburg had alleged that three listed companies--Adani Enterprises, Adani Ports, and Adani Power--structured the transactions to conceal the actual related party transactions by routing funds through the three alleged conduit entities.  

"It is held that impugned transactions cannot be classified as manipulative or fraudulent transactions or unfair trade practice...," SEBI said in the order. This is because there is no allegation of siphoning off of money or diversion of funds, all the money has come back with interest before the start of the investigation, and the impugned transactions have not been held as related party, as per the order. 

On Thursday, shares of Adani Ports closed 0.5% higher at INR 1,412.80 on the National Stock Exchange and those of Adani Power ended 0.1% higher at INR 631.35. Adani Enterprises' stock ended flat at INR 2,402.  End

Reported by Anjana Therese Antony

Edited by Avishek Dutta

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