Key Points:
SEBI issues clean chit to Adani in 2 out of 22 Hindenburg allegations
Notices say using intermediaries to transfer fund between related companies does not classify as 'related party transactions'
Adani says "transparency and integrity" define Adani Group
On Thursday, 18 September 2025, the Securities and Exchanges Board of India (SEBI), cleared Gautam Adani and his companies of some allegations of stock manipulation and financial fraud levied against him by Hindenburg Research.
Hindenburg Research, a US based short-selling firm, published a 106-page report in January 2023 accusing the Adani Group of stock manipulation, misrepresenting finances, and collusion. Amongst other points, the report alleged that the Adani Group was using offshore accounts to route funds between related companies without informing shareholders, thereby inflating share prices. Hindenburg said that this amounted to ‘related party transactions’, which violate SEBI guidelines.
SEBI published two orders on its website on Thursday, dismissing two of the 22 allegations raised against the Adani Group.
Hindenburg noted that Adani Ports & Special Economic Zone Ltd. had transferred funds through unrelated intermediaries – Adicorp Enterprises Pvt. Ltd., Milestone Tradelinks Pvt. Ltd., and Rehvar Infrastructure Pvt. Ltd. – enroute to Adani Power Ltd. and Adani Enterprises Ltd.
SEBI investigated the third-party transactions between the companies mentioned, concluding that the fund-transfers could not be classified as ‘related party transactions’ because of the intermediaries, and as such, the Adani Group had no obligations to disclose the transaction to stakeholders. It added that funds transferred between the companies were moved as loans, which were paid back during the investigation period.
It is worth noting that the investigation, which was ordered by the Supreme Court, was ongoing for two years and seven months, despite the SC specifying a timeline of two months.
See Also: Adani Power to Supply Power from Greenfield 1,600 MW Thermal Plant in Madhya Pradesh
An earlier investigation by SEBI into Adani’s offshore accounts had “drawn a blank”. Then, in July 2024, Hindenburg received a show cause notice from SEBI for violating Indian securities laws. In October 2024, following up on its earlier report, Hindenburg alleged a conflict of interest, pointing to SEBI’s inaction towards its assertions. It accused SEBI chief Madhabi Buch of holding stake in some of Adani’s offshore accounts. After mounting pressure, Buch was summoned by a Parliamentary Committee to assess the allegations made against her. She, however, never showed, citing personal reasons.
Most of the allegations against the Adani Group regarding stock manipulation and collusion remain unaddressed as of now. Adani is currently embroiled in a lawsuit with the US Securities and Exchange Commission, on charges of fraud and bribery.
Since the ‘clean chit’ was issued to the group, its market value has soared. Adani Enterprises stock has risen by 4.3%, while some subsidiaries have climbed even higher, by up to 10%. Following Hindenburg’s 2023 report, the company had lost around $150 billion of its market value, but has bounced back since.
Gautam Adani had this to say: “SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group.” [Rh/DS]
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