SEBI still probing over a dozen allegations against Adani Group
What's the story
The Securities and Exchange Board of India (SEBI) is still investigating over a dozen allegations against the Adani Group, according to Reuters. The news comes after SEBI cleared some allegations in the ongoing Adani-Hindenburg case. Some investigations into these allegations have been closed with no further action planned, but many cases are still pending final orders.
Ongoing investigations
Allegations of wrongly categorizing shareholders as public investors
The pending cases against the Adani Group include allegations that several companies, including Adani Enterprises, Adani Ports, Adani Energy, and Adani Power, wrongly categorized certain shareholders as public. These companies had disclosed in their latest financial statements that SEBI was investigating these allegations. In April, Reuters reported that around 30 entities of the Adani Group had applied to settle some of these regulatory charges.
Market reaction
Shares of Adani Group companies rise after SEBI's dismissal
On Thursday, SEBI dismissed two allegations against the Adani Group—one of stock manipulation and another on non-disclosure of related-party transactions. The accusations were made by US-based short seller Hindenburg Research. The Adani Group has consistently rejected these allegations as baseless. Following SEBI's dismissals, shares of all nine listed group companies rose on Friday, with gains led by a 12.7% jump in Adani Power's stock price and a 6% increase in that of Adani Enterprises'.