Sebi Clears Adani Group: No Violations Found in Hindenburg Allegations
The Securities and Exchange Board of India (Sebi) has exonerated the Adani Group and its Chairman, Gautam Adani, from allegations made by Hindenburg Research. The accusations pertained to routing funds through three entities to conceal related party transactions. Sebi found no violations or evidence of fraud.
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The Securities and Exchange Board of India (Sebi) has officially cleared the Adani Group and its chairman, Gautam Adani, from accusations made by Hindenburg Research. The American firm had claimed the conglomerate utilized three entities to obscure related party transactions.
Sebi issued two separate orders, concluding there were no breaches of regulations. The transactions in question did not fit the definition of related party dealings at the time, as the rules were expanded only after a 2021 amendment. Furthermore, it was determined that all loans were repaid with interest, confirming no fraudulent activity occurred.
The allegations centered around companies Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure serving as monetary conduits, supposedly allowing Adani to sidestep related party rules and potentially mislead investors. However, with no infractions proven, Sebi has dropped all proceedings against the Adani Group.
(With inputs from agencies.)
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