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Informist, Monday, Sept. 28, 2026

 

--SEBI issues settlement order vs 4 Adani group cos, Gautam Adani, others

--SEBI: Adani group cos settle minimum public holding norm breach case

--SEBI: Settlement amount INR 14.8 mln paid by 4 Adani group cos, others

 

MUMBAI – The Securities and Exchange Board of India issued a settlement order against Adani Enterprises Ltd., Adani Power Ltd., Adani Ports and Special Economic Zone Ltd., Adani Energy Solutions Ltd. (formerly Adani Transmission Ltd.), chairman of these four companies Gautam Adani, Rajesh Adani, and 12 other individuals in the matter of non-compliance with the minimum public shareholding requirement under the Indian securities law. Rajesh Adani is the brother of Gautam Adani, managing director of Adani Enterprises, and a director in the other three companies.

 

SEBI said the companies and individuals had paid an aggregate amount of INR 14.82 million to settle the ­­show-cause notice issued to them and other entities in September 2024. In the show-cause notice SEBI had alleged that Adani group companies and persons who were in charge and responsible failed to comply with the minimum public shareholding requirement prescribed under the Securities Contracts (Regulation) Rules, 1957, and the listing regulations. The rule specifies that listed companies must maintain a minimum public shareholding of at least 25%.

 

The market regulator said it had initiated an investigation into the matter in October 2020 after receiving "certain complaints during June and July 2020... alleging non-compliance with the minimum public shareholding requirements by certain listed companies in the Adani group." Following the issue of its show-cause notice in September 2024, SEBI issued a supplementary show-cause notice in March 2025 placing "additional material with respect to the said allegation."

 

After that, when the enforcement proceedings were going on, the four companies and their officials filed applications with SEBI under the settlement proceedings regulations. The internal committee under the regulations met the applicants in September 2025 and May. In the May meeting, the SEBI committee informed the applicants that a settlement amount of INR 3.71 million would have to be paid by each of the four companies and their directors and officials, including the Adani brothers.

 

Tuesday, SEBI had issued a settlement order against five Adani group companies in the case pertaining to January 2023 allegations of breach of related party transaction disclosure norms by US-based Hindenburg Research LLC. This case was settled for an aggregate amount of INR 15.08 million.

 

With respect to Monday's settlement order in the minimum public shareholding rule breach matter, although SEBI had initiated an investigation in October 2020, Hindenburg had also included this aspect stating they were suspicions over offshore funds and shell entities linked with Vinod Adani, elder brother of Gautam Adani, holding shares in Adani group companies which reduced the real public shareholding level to below 25%.

 

The short-seller firm had said if the Adani group "secretly controls significant amounts of publicly traded stocks without disclosure, the resultant share price of Adani listed companies could be easily manipulated to... give the appearance of liquidity, to help raise money, etc." SEBI did not dwell on Hindenburg's allegations in Monday's settlement order.  End

 

Reported by Rajesh Gajra

Edited by Deepshikha Bhardwaj

 

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