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Sebi Dismisses Hindenburg Allegations Clears Gautam Adani and Adani Group Companies
18 September 2025
Sebi’s Final Order : Adani Cleared of Wrongdoing
On September 18, 2025, the Securities and Exchange Board of India (Sebi) exonerated Gautam Adani, his brother Rajesh Adani, and several Adani Group firms, including Adani Ports, Adani Power, and Adicorp Enterprises, from charges linked to the Hindenburg Research report.
Whole-time member Kamlesh Chandra Varshneya wrote in the order:
“The allegations made against the noticees are not established. Considering this, the question of liability or penalty does not arise.”
This ruling brings closure to one of the most high-profile corporate battles in India’s market history.
The Hindenburg Report : Allegations That Rocked the Market
Back in January 2023, US short-seller Hindenburg Research accused the Adani Group of:
Stock price manipulation through offshore tax havens and shell companies.
Accounting irregularities and undisclosed related-party transactions (RPTs).
Using conduit firms to route funds back into listed Adani entities.
The report surfaced days before Adani Enterprises’ planned ₹20,000 crore FPO, sparking a steep crash in Adani stocks and wiping out billions in market capitalization.
Why Sebi Dismissed the Allegations
Sebi acknowledged that some Adani entities did route funds through three companies Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure. But the regulator concluded that:
At the time, these firms were not classified as related parties under Sebi’s Listing Obligations and Disclosure Requirements (LODR) framework.
Therefore, such transactions did not violate disclosure rules or require shareholder approval.
The 2021 amendment to broaden RPT definitions only took effect from April 2022, making it legally impermissible to apply it retroactively.
Legal experts noted the order highlights a regulatory gap that existed before the amendment but does not prove fraudulent intent.
Adani’s Response
Chairman Gautam Adani welcomed the decision, calling it a validation of the group’s stand.
On social media platform X, he wrote:
“Sebi has reaffirmed what we always maintained — that the Hindenburg claims were baseless. We deeply sympathize with investors who lost money due to this fraudulent report. Those who spread false narratives owe the nation an apology.”
Legal & Market Implications
For Investors: The ruling removes a major overhang on Adani stocks, which had been under scrutiny since 2023.
For Regulators: It underscores why Sebi tightened RPT rules in 2021 to capture indirect transactions.
For Hindenburg: While Adani has legal options to sue for defamation, experts say limited recourse exists as the firm has since ceased operations.
For Future Cases: The judgment clarifies that new definitions of RPTs cannot be retrofitted onto old transactions, setting a precedent in securities law.
Final Word
The dismissal of Hindenburg’s allegations marks a turning point for the Adani Group, clearing a cloud of suspicion that lingered for nearly two years. While the episode exposed regulatory gaps later addressed by Sebi, it also reinforces the need for stronger compliance frameworks. For Adani, the order is not just a legal victory it’s a reputational win that could help rebuild investor trust and stabilize its market standing.
