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Informist, Tuesday, Sept. 22, 2026

 

--SEBI issues settlement order in the matter of 5 Adani grp cos

--SEBI passes settlement order vs 5 Adani grp cos in related party deals case

--CONTEXT:Hindenburg had alleged related-party deal norms breach by Adani cos

--SEBI: Adani group cos settle related party deals case for INR 15.1 mln

 

MUMBAI – The Securities and Exchange Board of India issued a settlement order Tuesday in the matter of allegations of breach of related party transaction disclosure norms by US-based Hindenburg Research LLC against five Adani group companies. The market regulator agreed to settlement terms offered by the Adani group in the matter for a collective amount of INR 15.08 million.

 

The five Adani group companies listed in SEBI's settlement order are Adani Enterprises Ltd., Adani Total Gas Ltd., AWL Agri Business Ltd. (formerly Adani Wilmar Ltd.), Adani Green Energy Ltd., and Adani Energy Solutions Ltd. (formerly Adani Transmission Ltd.). In its order, SEBI said the settlement amounts were INR 7.61 million for Adani Enterprises, INR 4.55 million for Adani Green Energy, and INR 975,000 each for the remaining three companies.

 

Apart from related party transaction norms, Hindenburg Research, which had short sales positions in Adani group companies, in January 2023 had made serious allegation of offshore shell entities managed by Vinod Adani, the elder brother of Adani group Chairman Gautam Adani and former director with Adani Enterprises, manipulating share prices of the group's listed companies and routing funds to the listed companies' balance sheets to show the appearance of sound financial health and solvency. The firm had also alleged that the shell companies were used to help Adani group companies meeting the minimum public shareholding requirement of 25%.

 

SEBI said in the settlement order it had carried out a probe in Hindenburg's allegations on disclosure of related party transactions and corporate governance issues. SEBI said it also examined whether there were any violations of the listing regulations in the matter by seven Adani group companies – the above five, Adani Ports and Special Economic Zone Ltd., and Adani Power Ltd.

 

SEBI said in the settlement order that based on the findings from its preliminary probe, it initiated adjudication proceedings against the Adani group companies, excluding Adani Ports and Adani Power. SEBI said it issued a show-cause notice in February 2024 to Adani Enterprises, seeking its reply to alleged breach of listing regulation clause with respect to non-disclosure of related party transactions between a subsidiary and a related party of the company in the annual report for 2012-13 (Apr-Mar).

 

This show-cause notice also alleged that the company's audit report for FY15 was signed by Dharmesh Parikh & Co LLP without a valid peer review certificate, and the limited review audit report for two quarters in 2017 and one in 2021 were signed by Shah Dhandharia & Co LLP without a valid peer review certificate.

 

In the same show-cause notice of February 2024, SEBI directed the other four companies to reply to alleged breach of norms with regard to particular annual and quarterly audit reports being signed by the auditor without holding a valid peer review certificate.

 

During SEBI's proceedings, the five Adani group companies wrote to SEBI to settle the case and they filed an application under SEBI's settlement proceedings regulations. The internal committee of SEBI considered the Adani group companies' settlement application in meetings held on Aug. 6, 2024, Oct. 9, 2024, and May 11. The Adani group companies then proposed revised settlement terms on May 29.

 

A high powered advisory committee then accepted the settlement offers at its meeting on Jun. 29, and a panel of whole-time members of SEBI accepted the high powered advisory committee's recommendations on Aug. 13.  End

 

Reported by Rajesh Gajra

Edited by Avishek Dutta

 

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