18 September,2025 08:22 PM IST | Mumbai | mid-day online correspondent
Sebi on Thursday cleared the Adani Group and its Chairman, Gautam Adani, of all allegations. File Pic
India's markets regulator, the Securities and Exchange Board of India (Sebi), on Thursday cleared the Adani Group and its Chairman, Gautam Adani, of all allegations made by US-based short-seller Hindenburg Research regarding the alleged misuse of funds and concealment of related party transactions, reported the PTI.
In 2023, Hindenburg Research released a damning report accusing the Adani Group of stock manipulation, misuse of offshore tax havens, and artificially inflated valuations. The report claimed that Gautam Adani, the group's chairman, had amassed over USD 100 billion in wealth over the previous three years, primarily due to a dramatic rise in the share prices of the group's seven main listed companies, which had reportedly surged by an average of 819 per cent during that time.
Following the allegations, the Adani Group strongly denied all claims, describing them as 'baseless' and a 'malicious attempt to undermine' the company's reputation. The conglomerate alleged that Hindenburg Research's report was motivated by financial self-interest, as the firm held a short position against Adani stocks, standing to profit if share prices declined.
In the wake of the controversy, the Sebi had initiated an investigation into both Hindenburg and the Adani Group to examine the validity of the claims and the nature of the transactions involved.
According to the PTI, in two separate orders, the regulator found no violations, noting that at the time such transactions with unrelated parties did not qualify as related party dealings (the definition was expanded only after a 2021 amendment).
The regulator also noted that loans involved in the transactions were repaid with interest, no funds were misappropriated, and there was no evidence of fraud or unfair trade practices.
According to Hindenburg, was allegedly done to circumvent rules on related party transactions and potentially mislead investors.
Sebi's investigation has found no merit in these claims under the legal framework applicable at the time of the transactions.
Meanwhile, buoyed by Sebi clean chit, billionaire Gautam Adani on Thursday said those who spread false narratives using Hindenburg Research's 'fraudulent and motivated' report owe the nation an apology.
In a post on X accompanied by the national tricolour, Adani said the Sebi clean chit has reaffirmed what his group has always maintained -- "that the Hindenburg claims were baseless".
Sebi on Thursday cleared Adani and his group of stock manipulation allegations made by US short-seller Hindenburg Research, saying it found no evidence that the conglomerate used related parties to route funds into its listed companies.
"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," the Adani Group Chairman said in the post.
"We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology," he said. "Our commitment to India's institutions, to India's people and to nation building remains unwavering," he signed off the post with, "Satyamev Jayate! JAI HIND!"
(with PTI inputs)
