NewKerala.com

Key Points

Gautam Adani has demanded a national apology following SEBI's complete clearance of all Hindenburg Research allegations. The market regulator found no evidence of fraud, misrepresentation, or violation of disclosure norms after months of investigation. Adani expressed deep sympathy for investors who suffered losses due to what he called a "fraudulent and motivated report." The clean chit brings closure to over a year of scrutiny that had significantly impacted the conglomerate's market value.

Key Points: Gautam Adani Demands National Apology After SEBI Hindenburg Clean Chit

  • SEBI investigation found no evidence of fraud or disclosure violations by Adani Group
  • Hindenburg's allegations deemed baseless after exhaustive regulatory scrutiny
  • Adani expresses empathy for investors who lost money due to report
  • Market regulator confirms no related-party transaction violations occurred
  • All funds in questioned transactions returned with interest according to SEBI
  • Supreme Court upheld SEBI's regulatory amendments and investigation process
  • Adani Group maintains commitment to transparency and nation-building
3 min read

Owe national apology: Gautam Adani slams Hindenburg's baseless claims after SEBI clean chit

Adani Group chairman demands national apology after SEBI investigation clears all Hindenburg allegations of fraud and financial irregularities. Full vindication for Indian conglomerate.

"Those who spread false narratives owe the nation an apology - Gautam Adani"

Ahmedabad, September 18

Adani Group Chairman Gautam Adani on Thursday demanded a "national apology" from those who spread the "false narratives" of Hindenburg Research.

This comes after the Securities and Exchange Board of India (SEBI) gave a clean chit to the Adani Group regarding their "baseless" allegations of violating disclosure norms or constituting fraudulent practices.

In a post on X, Gautam Adani emphasised the group's commitment to transparency and integrity, expressing empathy for investors who lost money due to the report.

"After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology," he posted on X.

The US-based short-seller had alleged fund routing to conceal related-party transactions, sparking significant market volatility and impacting Adani Group's market value. The clean chit brings significant relief to the Adani Group, ending months of scrutiny.

"Our commitment to India's institutions, to India's people and to nation building remains unwavering. Satyamev Jayate! JAI HIND!" Adani Group Chairman added on X.

The market regulator on Thursday refuted the allegations made by US Short seller Hindenburg against the Adani Group. SEBI concluded that there is no violation of the listing agreement or SEBI Listing Obligations and Disclosure Requirements (LODR), and the impugned transactions do not qualify as "related party transactions".

According to SEBI, "Reading of Listing Agreement and SEBI (LODR) Regulations reveals that transactions between a listed company with unrelated party is not covered within the definition of "related party transactions" as it existed during the time when impugned transactions took place, though included specifically after the 2021 amendment.

SEBI said that the Supreme Court had rejected the plea of the petitioner and held that procedure followed in arriving at the current shape of regulations is not tainted with any illegality. The Supreme Court also held that no valid grounds have been raised to direct SEBI to revoke its amendments to the SEBI(LODR) Regulations.

SEBI said that there is no violation of Section 12A of the SEBI Act and SEBI-Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (PFUTP) Regulations as alleged. It concluded that no fraud, misrepresentation, or siphoning of funds was proven and all funds were returned with interest. Thus, all allegations in Show cause Notice not established.

SEBI concluded that no liability or penalties were imposed on Adani Group entities or individuals and the proceedings were disposed of without directions.

In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company's stock price. The group at the time had rubbished these claims.

The Adani group has repeatedly denied all the accusations in the Hindenburg Research report. While addressing the Annual General Meeting (AGM) of Adani Enterprises at the time, Group Chairman Gautam Adani had said they were "faced with baseless accusations made by a foreign short seller, that questioned our decades of hard work."

- ANI

Share this article:

Reader Comments

P
Priya S
As an investor who lost money during that period, I'm relieved but also angry. These foreign short-sellers play with our livelihoods. SEBI should take stronger action against such entities.
M
Michael C
While SEBI's findings are important, we must remember that regulatory clean chits don't always mean complete innocence. The timing of regulatory changes before these transactions is worth examining.
A
Ananya R
Satyamev Jayate indeed! This shows the strength of our institutions. Foreign companies cannot just come and attack our successful businesses. Proud of how Adani handled this crisis with dignity.
S
Sarah B
The real victims are the small investors who panicked and sold their shares. Hope this teaches everyone to have more faith in Indian companies and not react to foreign reports blindly.
V
Vikram M
This is a big win for Indian corporate governance. Adani Group's projects are crucial for India's infrastructure development. Such attacks only harm our national progress.
K
Karthik V
While I'm happy for the clean chit, I hope this leads to better transparency mechanisms. Regular investors need clearer information to make informed decisions without fearing such market manipulations.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50