Stock Manipulation Claims Rejected by Indian Regulators in Adani Group Case, Yet Gautam Adani Deals with Bribery and Fraud Accusations in U.S. Courts
The Securities and Exchange Board of India (SEBI) has announced its decision to dismiss allegations of stock manipulation against Indian billionaire Gautam Adani and his group of companies. The investigation, which was initiated in 2023, was prompted by accusations made by the now-defunct Hindenburg Research.
The investigation involved Adani Ports, Adani Power, and Adani Enterprises, and covered a four-year period from 2020 to 2024. The allegations against Adani Group companies were not limited to stock manipulation. They also included the use of tax havens and failure to disclose transactions between related parties.
One of the most controversial allegations was the bribery charges against Adani, along with two executives (Sagar Adani and Vneet Jaain), involving solar energy contracts. It was claimed that over $250m in bribes were paid to Indian officials, with the expectation of generating $2bn in profits.
However, the two final orders published by SEBI on Thursday detail the findings of the investigation, which found no violation by Adani Group companies. Adani, in response, expressed sympathy for investors who lost money due to the Hindenburg report, and reaffirmed that the allegations made by Hindenburg Research are baseless.
The company's market capitalization has taken a significant hit, with a drop of $85bn since the Hindenburg report was published, bringing the current market capitalization to $150bn. The Adani Group is also facing bribery charges in the United States, but as of now, there are no publicly available updates or credible information regarding investigations against Gautam Adani in the United States related to corruption allegations.
The Securities and Exchange Board of India (SEBI) is a regulatory body in India responsible for overseeing the securities market. Its decision to dismiss the allegations against Adani Group companies is a significant development in the ongoing saga, providing some relief to the embattled businessman and his companies.
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