SEBI Gives Clean Chit to Adani Group, Dismisses Hindenburg Report
New Delhi, September 18, 2025 — The Securities and Exchange Board of India (SEBI) has officially cleared the Adani Group of all allegations made by US short-seller Hindenburg Research. After a comprehensive two-year investigation, SEBI found no evidence of stock manipulation, related party transaction breaches, or any regulatory violations by Adani companies during the period under scrutiny.
Background and Investigation Overview
In early 2023, Hindenburg Research published a report accusing the Adani Group of using offshore entities like Milestone Tradelinks and Rehvar Infrastructure to conduct undisclosed related party transactions and inflate company valuations. These serious claims triggered regulatory probes and market turbulence, leading to a significant loss in the group’s market value.
SEBI scrutinised financial transactions between 2018 and 2023. The investigation focused on whether these dealings violated Listing Obligations and Disclosure Requirements (LODR) under SEBI regulations.
SEBI’s Findings: No Violation or Fund Diversion
No Related Party Transaction Breach: SEBI ruled that the transactions involving Milestone and Rehvar were not related party transactions as defined by applicable LODR rules in effect during the relevant period. The expanded definition of related parties came into effect only in April 2023 and cannot be applied retroactively.
Full Loan Repayments: All loans extended by these entities to the Adani Group were fully repaid with interest, with no evidence of fund diversion or investor harm.
Lack of Manipulation Evidence: SEBI found no fraudulent activity, misrepresentation, or market manipulation.
Kamlesh Chandra Varshney, SEBI’s whole-time member, stated, “The allegations are not established and, hence, no liability or penalties apply.”
Impact and Market Response
The Adani Group’s market value had slumped significantly following the Hindenburg report, dropping from ₹19.2 trillion to approximately ₹6.8 trillion within weeks in 2023. The recent SEBI clearance is expected to help restore investor sentiment and stability.
Gautam Adani responded, “SEBI has reaffirmed what we have always maintained — the claims were baseless. We regret the distress caused to investors misled by a motivated report. Those spreading false narratives owe the nation an apology.”.
Continuing Oversight and Outlook
While this SEBI decision closes one chapter, ongoing investigations regarding other compliance issues remain. Analysts caution investors to stay informed as regulatory scrutiny continues.
Conclusion
SEBI’s dismissal of all major allegations against the Adani Group restores regulatory clarity and bolsters market confidence. Compliance with financial norms and transparent transactions solidify the group’s position amid historic challenges.
