Shares of the Adani Group rallied sharply on Friday after the Securities and Exchange Board of India (SEBI) issued its final order dismissing allegations made by Hindenburg Research. The market regulator’s clean chit triggered fresh buying across Adani counters.
Adani Total Gas led the rally, soaring 10%. Adani Power gained over 7.2%, while Adani Green Energy, Adani Enterprises, and Adani Energy Solutions were up nearly 4% each. Adani Ports and SEZ also advanced about 2% in early trade.
What the SEBI Order Said
The case revolved around whether loan transactions carried out between FY2018–19 and FY2022–23 through two private entities—Milestone Tradelinks Pvt. Ltd. and Rehvar Infrastructure Pvt. Ltd.—should be treated as undisclosed related party transactions (RPTs).
Hindenburg had alleged that these firms acted as conduits to circulate funds within the Adani Group.
SEBI, however, found otherwise. After a detailed probe and hearings, the regulator concluded that:
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The transactions in question did not qualify as related party transactions under the Listing Obligations and Disclosure Requirements (LODR) Regulations applicable during that period.
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All loans, along with accrued interest, were fully repaid before March 31, 2023, with no evidence of fund diversion or investor losses.
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The 2021 amendment to expand the definition of RPTs came into force only from April 2022, and thus could not be applied retrospectively.
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Allegations of fraudulent trade practices, price manipulation, or inducement of investors were unsupported by evidence.
Who Stands Cleared
The order effectively exonerates Adani Ports and SEZ, Adani Power, Adani Enterprises, and individuals including Gautam Adani, Rajesh Adani, and Group CFO Jugeshinder Singh, along with the two private entities Milestone and Rehvar. SEBI stated that since no violations were established, no penalties or further action were necessary.
