The Securities and Exchange Board of India (Sebi) is likely to suggest no major lapses by Adani group companies in its probe into the allegations of market manipulation and insider trading made by the US-based short-seller Hindenburg Research.
According to sources familiar with the probe, Sebi has not found any evidence to support the allegations of market manipulation. The regulator has also not found any evidence to suggest that Adani group companies were involved in insider trading.
However, Sebi has found one minor violation of securities laws by Adani Transmission Ltd. The company had not disclosed a related-party transaction in its annual report. Sebi is likely to recommend a penalty of up to Rs 1 crore for this violation.
The Sebi probe was initiated in January 2023 after Hindenburg Research alleged that Adani group companies had engaged in market manipulation and insider trading. The short-seller had also alleged that Adani group companies had close ties to the government and had benefited from preferential treatment.
The Sebi probe has been a closely watched development. The Adani group is one of the largest conglomerates in India and its businesses span across sectors such as energy, ports, airports, and infrastructure.
The outcome of the Sebi probe is a relief for the Adani group. The group has denied all the allegations made by Hindenburg Research and has said that it is committed to the highest standards of corporate governance.
The Sebi probe is not the only investigation that the Adani group is facing. The group is also being investigated by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). The CBI is investigating allegations of money laundering and the ED is investigating allegations of violation of foreign exchange laws.
The Adani group has said that it is cooperating with all the investigations and that it is confident of clearing its name.
The outcome of the Sebi probe is a positive development for the Adani group. However, the group will still need to clear its name in the other investigations that it is facing. The outcome of these investigations will have a significant impact on the reputation of the Adani group and its businesses.