"India is owed an apology by Hindenburg, claims Adani in response to Sebi's clearance"
Adani Group Cleared of Allegations by Indian Regulator
In a significant development, the Securities and Exchange Board of India (Sebi) has absolved the Adani Group and its key figures, including Gautam Adani and Rajesh Adani, of the serious accusations raised by Hindenburg Research. The allegations, which included corporate fraud, stock manipulation, accounting irregularities, and related-party transactions, were found to be baseless by Sebi.
The controversy erupted when Hindenburg Research claimed that the Adani Group had committed "the largest corporate fraud in history." This led to a significant drop in the market value of the Adani Group, with a loss of around $150 billion, and shares of Adani Enterprises collapsing by nearly 70%.
However, Sebi's thorough investigation found no evidence of unlawful activities in loans involving Adicorp Enterprises, Milestone Tradelinks (MTPL), and Rehvar Infrastructure. The loans in question were interest-bearing, repaid in full, and not unlawful under the disclosure framework applicable at the time.
Sebi's whole-time member, Kamlesh Varshney, wrote in the order that the allegations made against the Adani group firms and officials in the show-cause notice are not established. Consequently, he disposed of the proceedings against the Adani group firms and officials without any direction.
Gautam Adani publicly supported the dismissal of the Hindenburg allegations against him and his companies, emphasizing that the SEBI decision disproved the baseless accusations by Hindenburg Research. Adani expressed deep concern for those who have lost money due to the "fraudulent and motivated" report, stating that those who spread false narratives and caused investors to lose money owe the nation an apology.
The Adani Group's commitment to India's institutions, to India's people, and to nation building remains unwavering, according to Gautam Adani. Hindenburg's founder, Nate Anderson, announced that the firm would be "disbanded."
Sebi has reaffirmed that the claims raised by Hindenburg were baseless. No evidence of insider trading, stock price manipulation, or breaches of minimum public shareholding rules was found by Sebi. Therefore, no penalties or further action were warranted by Sebi due to the lack of substantiation of the allegations.
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