India regulator still reviewing more than a dozen allegations against Adani, sources say

MUMBAI: India’s market regulator is still looking into more than a dozen allegations that Adani Group and its offshore funds broke securities regulations, two sources with direct knowledge of the investigations said on Friday.

They spoke a day after the Securities and Exchange Board of India (SEBI) dismissed two allegations – one of stock manipulation, the other non-disclosure of related party transactions – made two years ago against Adani by U.S. short-seller Hindenburg Research.

The conglomerate owned by billionaire Gautam Adani – which includes infrastructure giants Adani Ports and Adani Power as well as his flagship Adani Enterprises – has regularly dismissed all the allegations by Hindenburg as baseless.

It hailed the dismissals on Thursday but did not immediately respond on Friday to emailed questions about the report of continuing investigations.

SEBI’s communications department also did not immediately respond to requests for comment.

India’s SEBI dismisses Hindenburg allegations against Adani group

The regulator began investigating Adani Group companies in 2023 after now-defunct Hindenburg accused them in a report of improper use of tax havens and stock price manipulation. The accusations initially led to a $150-billion sell-off of the group’s stocks.

The stocks have since recovered and shares of all nine listed group companies rose on Friday in reaction to the regulator’s dismissals a day earlier. Gains were led by Adani Power’s 12.7% jump. Adani Enterprises was up 6%.

One of the sources told Reuters on Friday that some of the investigations into allegations against the Adani group had been closed and no further action would be taken.

But “there are at least over a dozen cases still pending for final orders,” the source said, referring to decisions on whether to dismiss the allegations or impose monetary penalties.

Those cases included allegations that Adani Enterprises, Adani Ports, Adani Energy and Adani Power had wrongfully categorised certain shareholders as public, the sources said.

Those four companies reported in their financial statements in July and August that the watchdog was looking into the wrongful categorisation allegations.

Reuters reported in April that around 30 Adani group entities have applied to settle some of these regulatory charges.