Adani Group Companies get notices from SEBI for rule violations
SEBI has issued show cause notices to seven Adani Group companies for regulatory violations.
Seven out of the ten listed companies of Adani Group received show cause notices from India’s market regulator, the Securities and Exchange Board of India (SEBI), in the last financial year. These notices were for breaking certain rules, including those related to listing and transactions with related parties. The companies stated that these notices did not have a significant impact on their financial statements.
Adani Enterprises, Adani Green Energy, Adani Power, Adani Energy Solutions, Adani Total Gas, Adani Wilmar, and Adani Ports and Logistics reported receiving these notices. The notices were issued during the fourth quarter of the fiscal year 2024. Each company made separate announcements to the stock exchanges about the notices.
Adani Enterprises explained that it got two notices from SEBI regarding non-compliance with the Listing Agreement and LODR Regulations related to transactions with third parties and the validity of peer review certificates of auditors. They stated, “There was no material consequential effect of the SEBI notices to relevant financial statements and no material non-compliance of applicable laws and regulations.” Other companies did not provide additional details about the specific violations.
Adani Green Energy mentioned receiving a notice about the validity of a Peer Review Certificate (PRC) of one of its joint auditors, which they have addressed.
In January 2023, US-based short seller Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud. The company denied these claims. Following this, petitions were filed in the Supreme Court of India for an independent investigation. In March 2023, the Supreme Court set up an expert committee led by former judge Justice A.M. Sapre to investigate possible regulatory failures related to the Adani Group. According to the Supreme Court’s status report dated August 25, 2023, SEBI concluded investigations in 22 out of 24 cases.
In January this year, the Supreme Court closed all related petitions and directed SEBI to complete the remaining investigations within three months and finalize the investigations.
