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Sebi Gives Clean Chit To Adani Group, Dismisses Hindenburg’s Manipulation Allegations
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Sebi in its order says the ‘allegations made against Noticees in the show-cause notice are not established’.
Hindenburg Research became widely known in India in early 2023 after publishing a controversial report targeting the Adani Group, accusing it of being involved in “the largest con in corporate history”.
In a major development, the Securities & Exchange Board of India (Sebi) on Thursday gave a clean chit to Adani group, dismissing allegations of stock manipulation made by US short-seller Hindenburg Research against Gautam Adani and his group companies, including Adani Ports and Adani Power.
“Having considered the matter holistically, I find that the allegations made against Noticees in the SCN (show-cause notice) are not established. Considering the above, the question of devolvement of any liability on Noticees does not arise and hence the question of determination of quantum of penalty also does not require any deliberation. I, therefore, in exercise of the powers conferred upon me under section 19 of the SEBI Act, 1992 read with sub-sections (1) and (4) of section 11, subsection (4A) of section 11 and sub-sections (1) and (2) of section 11B (1) of the SEBI Act, 1992, hereby dispose of the instant proceedings against Noticees without any direction,” Kamlesh C Varshney, whole-time member of Sebi, said in his two separate similarly worded orders on proceedings against the Adani group entities.
The capital market regulator had been examining allegations raised by US short seller Hindenburg Research that Adani Enterprises and Adani Power Mundra (since merged with Adani Power Ltd) received funding routed through Milestone Tradelinks and Rehvar Infrastructure via Adani Infra (India) in FY21. Hindenburg had questioned the original source of funds of these two entities.
In its order, SEBI said it conducted a detailed probe to check for any possible misrepresentation in financial statements, or attempts to bypass provisions of the SEBI Act, 1992, the Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, and the PFUTP Regulations, 2003, among others.
Now-disbanded Hindenburg Research became widely known in India in early 2023 after publishing a controversial report targeting the Adani Group, accusing it of being involved in “the largest con in corporate history”. The report, which alleged stock manipulation by the conglomerate, led to a sharp decline in the Adani Group’s market value.
Despite the serious nature of the allegations, Adani and his companies have consistently denied all charges.
The group later recovered most of the losses, as the accusations were not substantiated.
In January 2025, Hinderberg founder Nate Anderson announced the decision to disband Hindenburg Research, stating that the firm’s operations would wind down after completing its pipeline of investigative reports.
Beyond the Adani Group, Hindenburg Research also targeted former India’s markets regulator Madhavi Puri Buch and her husband in previous reports.
September 18, 2025, 18:15 IST
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