SEBI gives Adani Group clean chit against Hindenburg allegations

Capital markets regulator SEBI on Thursday cleared the Adani Group and its associated entities of all allegations in the Hindenburg case. 

The SEBI order states that the matter has been considered holistically, and the allegations made against the Adani Group “are not established”.

“Considering the above, the question of devolvement of any liability on Notices (Adani Group and associated companies) does not arise and hence the question of determination of quantum of penalty also does not require any deliberation,” the order further states.

The proceedings were disposed of without directions.

The alleged transactions were deemed genuine business dealings and not fraudulent or violative of RPT disclosure norms, given the legal framework applicable during the investigation period. RPT disclosures under the SEBI refer to the mandatory transparency requirements for related party transactions entered into by listed companies to prevent conflicts of interest and ensure fair dealings.

The order also states that there was no violation of Listing Obligations and Disclosure Requirements (LODR). The SEBI's LODR norms mandate companies to disclose detailed information about these transactions to their audit committees and shareholders, including valuation reports for material transactions, and have a defined process for obtaining independent approvals.

The SEBI rejected the contention that the Adani Group had engaged in a scheme to conceal related party transactions, pointing out that the widened definition covering indirect transactions was only introduced prospectively via the 2021 amendment to the LODR rules. Applying it retrospectively, the regulator said, would be legally impermissible.

The SEBI probe also found that alleged loans and fund movements were fully repaid and did not qualify as undisclosed related party transactions or fraudulent market practices.

SEBI probe

The Supreme Court of India had ordered the SEBI to probe into the allegations of stock price manipulation by the Adani group and had formed an expert committee with the objective of reviewing and strengthening the existing financial regulatory mechanisms.

The controversial Hindenburg Research’s report, inter alia, alleged that the Adani Group of companies has manipulated its share prices, failed to disclose transactions with related parties and other relevant information concerning related parties in contravention of the regulations framed by the SEBI, and violated other provisions of securities laws.

The report about Indian billionaire Gautam Adani had led to a stock rout, erasing over $100 billion from his empire and pushing him down on the global rich list at the time of the controversy.

Hindenburg goes after SEBI chief

However, in January 2025, Hindenburg Research accused then-SEBI chairperson Madhabi Puri Buch and her husband, Dhaval Buch, of having stakes in Adani Group’s funds.

Notably, the earlier allegations that SEBI was tasked by the Supreme Court of India to investigate, were also made by Hindenburg Research.

The short-seller accused Madhabi and Dhaval Buch of hiding stakes in Adani’s offshore accounts. 

The report also alleged that the funds are associated with the same alleged offshore money that was associated with Vinod Adani, brother of Gautam Adani, the head of Adani Group.

Clean chit to Buch, Hindenburg shuts shop

In May 2025, the Lokpal gave a clean chit to Buch over the allegations levelled against her in the issue of US short-seller Hindenburg Research. 

The anti-corruption body, headed by former Supreme Court judge, Justice AM Khanwilkar (retd), stated, in an order dated May 28, that there is no material evidence to order an investigation against Buch.

Later, Hindenburg Research founder Nate Anderson announced to disband the short seller firm, saying there is not one specific thing — “no particular threat, no health issue and no big personal issue”. 

In a letter posted on his website, Anderson had said that the intensity and focus “has come at the cost of missing a lot of the rest of the world and the people I care about. I now view Hindenburg as a chapter in my life, not a central thing that defines me.”

(with inputs from syndicated feed)