Adani Group Vindicated as SEBI Clears Fraud Claims
In a win for the Adani Group, India's SEBI dismissed allegations made by Hindenburg Research about undisclosed transactions and fraud. The investigation concluded that the Adani companies did not breach regulations, as the controversial transactions were not classified as related party dealings under the rules in force at the time.
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In a significant win for the Adani Group, the Securities and Exchange Board of India (SEBI) has exonerated the conglomerate from allegations made by US-based Hindenburg Research. According to the Adani Group, the market regulator's investigation revealed that the allegations were baseless.
The regulatory body SEBI found that the Adani Group had not breached any regulations in its financial dealings through two private firms, thus nullifying accusations of undisclosed related party transactions. This inquiry, which was initiated following a Supreme Court directive about the Hindenburg report in January 2023, concentrated on the connections between listed Adani entities and unlisted firms Milestone Tradelinks and Rehvar Infrastructure.
While Hindenburg had alleged these private firms concealed transactions from shareholders, SEBI's exhaustive investigation concluded otherwise. It noted that the LODR Regulations applicable during 2018-2023 defined related party transactions differently than the 2021 amendments. This ruling offers substantial relief to the embattled Adani Group, whose market value had previously nosedived due to these claims.
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