SEBI Exonerates Adani Group in Hindenburg Case, Dismisses All Allegations

In a landmark ruling that concludes nearly three years of regulatory scrutiny, the Securities and Exchange Board of India (SEBI) has cleared the Adani Group and its top executives of all allegations made by US-based short-seller Hindenburg Research. The regulator’s final orders dismissed claims of stock manipulation, undisclosed related-party transactions, and violations of securities laws.

The investigation stemmed from Hindenburg’s explosive January 2023 report, which accused the Adani conglomerate of routing funds through obscure entities—Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure—to inflate stock prices and conceal financial dealings. The report triggered a massive sell-off, erasing over $150 billion in market value across Adani’s listed companies.

SEBI’s Key Findings

• The alleged fund transfers were genuine commercial loans, fully repaid with interest before the investigation began.
• The entities involved were not classified as “related parties” under the Listing Obligations and Disclosure Requirements (LODR) regulations applicable at the time.
• No violations were found under Section 12A of the SEBI Act or the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.
• Insider trading and manipulation claims were deemed unsubstantiated.

SEBI emphasized that applying newer definitions of related-party transactions retroactively would be legally impermissible. The regulator disposed of all proceedings without imposing penalties or further directions.

Market Reaction

• Adani Total Gas rallied over 13%
• Adani Power jumped 9%
• Adani Enterprises rose nearly 5% on the BSE

The verdict restored investor confidence and marked a dramatic turnaround for the conglomerate.

Gautam Adani Responds

“After an exhaustive investigation, SEBI has reaffirmed what we have always maintained—that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report.”

Broader Implications

The SEBI ruling not only vindicates the Adani Group but also closes one of the most contentious chapters in India’s corporate history. It underscores the importance of regulatory due process and may influence future discourse on short-seller activism and corporate governance in emerging markets.