SEBI clears Adani of Hindenburg; they must apologise to nation, says chief Gautam Adani

India's markets regulator on Friday gave a clean chit to billionaire Gautam Adani and his conglomerate in a high-profile probe into allegations of stock manipulation and accounting fraud levelled by U.S. short-seller Hindenburg Research.
The Securities and Exchange Board of India (SEBI) issued final orders exonerating Adani, his brother Rajesh Adani, and several group companies from the claims made in Hindenburg's January 2023 report, which had accused the group of using offshore entities to artificially inflate share prices and siphon funds. SEBI's investigation, spanning fiscal years 2013 to 2021, found no evidence of fraudulent transactions, insider trading, market manipulation or breaches of public shareholding norms.
"There is no violation of listing agreement or SEBI (LODR) regulations as the impugned transactions do not qualify as 'related-party transactions'," SEBI whole-time member Kamlesh Varshney said in the order, referring to Listing Obligations and Disclosure Requirements rules. The regulator examined loans and deals involving Adani entities such as Adicorp Enterprises Pvt Ltd, Milestone Tradelinks Pvt Ltd and Rehvar Infrastructure Pvt Ltd, concluding they were with unrelated parties at the time and had been repaid with interest.

Hindenburg Owes Apology

Adani Group Chairman Gautam Adani hailed the ruling as vindication, saying in a statement: "After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group." He added that those who amplified the "fraudulent and motivated" report "owed the nation an apology," posting the message on social media platform X alongside India's national flag.
The Hindenburg report triggered a $150 billion wipeout in Adani Group market value within days, sparking a political firestorm in India, with the opposition targetting the BJP led government. The ruling Bharatiya Janata Party (BJP) dismissed the allegations as a "foreign plot" to hinder India's growth.
A Supreme Court-appointed expert panel in 2023 had already found no prima facie evidence of wrongdoing, but SEBI's probe dragged on amid tensions, including Hindenburg's August 2024 accusations against SEBI chief Madhabi Puri Buch over alleged conflicts of interest. Opposition parties renewed calls for Buch's resignation, which the BJP rejected as baseless.
Adani shares, which have largely recovered from the initial plunge, were in focus at the open on Friday. Adani Enterprises, Adani Power and Adani Green Energy - key group firms - saw early gains of 2-4%, with analysts forecasting further upside. "This sharp relief rally could push Adani Enterprises towards 2,600 rupees," said a report from RIA Advisory, citing the closure of a major overhang.
SEBI's verdict caps a saga that tested India's regulatory resilience and investor confidence in one of Asia's fastest-growing conglomerates. Former SEBI director J. Ranganayakulu described the orders as clearing "all doubts," while top lawyers praised the thoroughness of the probe.

Read the SEBI order in detail below: