New Delhi, Sep 19 (IANS) The Securities and Exchange Board of India’s (SEBI) clean chit to the Adani Group has come as major relief for the conglomerate, senior lawyer Siddharth Luthra said on Friday, stating that the order makes it clear that the Group has not committed any wrongdoing.
“I believe that market regulator SEBI is governed by certain powers, rules, and regulations, and its investigations have been very comprehensive in the past. Therefore, receiving a clean chit from the regulator is a relief for the Adani Group,” Luthra told IANS.
This also makes it clear that the Adani Group has not committed any wrongdoing, Luthra added.
“Although I have not yet had the opportunity to review the report, it will definitely have a very positive impact on the Adani Group in the future,” he said further.
In a significant win for the Adani Group, the Securities and Exchange Board of India (SEBI) concluded its investigation into the claims made by US short-seller Hindenburg Research.
India’s market regulator found that the Indian conglomerate did not break any laws by transferring money through two private companies, thereby rejecting allegations of fraud and covert related-party transactions.
This final ruling reveals the falsity of the claims that the short-seller had widely exaggerated.
The investigation focused on transactions between two private, unlisted companies, Milestone Tradelinks and Rehvar Infrastructure, and publicly listed Adani companies, Adani Ports and Special Economic Zone, Adani Power, and Adani Enterprises. The investigation was prompted by a Supreme Court directive after the Hindenburg report in January 2023
Hindenburg had claimed that these private companies were a front for transactions that ought to have been reported to shareholders as “related party transactions” (RPTs).
But the SEBI’s thorough investigation, which is described in its final order, found no evidence to support these claims. The impact of the LODR Regulations as they were in effect during the investigation period (2018–2023) served as the foundation for the regulator’s main conclusion.
–IANS
aps/na
