The Securities and Exchange Board of India (SEBI) has dismissed allegations of stock manipulation, insider trading and related-party violations brought against the Adani Group by U.S.-based short-seller Hindenburg Research. In a detailed order, the market regulator concluded that there was no evidence to substantiate the claims made in the January 2023 report that triggered a sharp erosion in the market value of the conglomerate.
SEBI examined whether the Adani Group engaged in undisclosed related-party transactions through offshore entities and whether funds were routed in a manner that inflated stock prices. The regulator noted that the transactions under scrutiny did not qualify as related-party under the rules applicable at the relevant time and that no violation of disclosure norms had occurred. It further observed that there was no proof of fund diversion or use of monies for manipulative purposes.
The decision brought immediate relief to investors, with Adani Group stocks rallying sharply across exchanges. Shares of Adani Total Gas, Adani Power and Adani Enterprises gained between 5 and 13 percent in early trade following the announcement. Analysts said the order removes a significant regulatory overhang and could pave the way for renewed institutional interest in the group’s companies.
Group chairman Gautam Adani welcomed SEBI’s verdict, describing the allegations as “baseless” and reaffirming that the conglomerate has always operated transparently. He expressed regret over the financial losses suffered by investors after the Hindenburg report and said those who had spread misleading narratives should apologise.
Market experts observed that SEBI’s findings rested on the legal definitions of related-party transactions in effect at the time of the alleged dealings. While the clean chit is expected to strengthen the group’s standing, some analysts cautioned that rebuilding investor trust and addressing lingering concerns over corporate governance would remain ongoing challenges.
With SEBI’s ruling, the Adani Group has secured regulatory clarity after nearly three years of scrutiny. The order is seen as a turning point for the conglomerate, which is now expected to focus on restoring confidence and advancing its expansion plans across energy, infrastructure and logistics.
