'No violations': Sebi gives clean chit to Adani in Hindenburg case
New Delhi, Sep 18, 2025
In 2023, Hindenburg published a scathing report accusing the Adani Group of stock manipulation, improper use of offshore tax havens, and inflated valuations
The Securities and Exchange Board of India (SEBI) on Thursday cleared the Adani Group of allegations made by US-based short-seller Hindenburg Research, saying it found no breach of regulatory norms by the group’s companies.
"I find that the allegations made against noticees in the SCN are not established. Considering the above, the question of devolvement of any liability on Noticees does not arise and hence the question of determination of quantum of penalty also does not require any deliberation," Sebi's whole-time Member Kamlesh Chandra Varshneya wrote in the order.
In 2023, Hindenburg published a scathing report accusing the Adani Group of stock manipulation, improper use of offshore tax havens, and inflated valuations. It alleged that Adani Group's chairman Gautam Adani added more than $100 billion in the past three years, largely through "stock price appreciation in the group’s 7 key listed companies, which spiked an average of 819 per cent in that period."
The report triggered a major sell-off, causing Adani Group's stock prices to plummet by over 70 per cent in some cases, leading to a loss of over $150 billion in market value.
After the allegations, the Adani Group denied all allegations, calling them "baseless" and a "malicious attempt to undermine" the company. They claimed Hindenburg's report is motivated by their short position against the Adani Group, where they stand to gain financially if the stock price falls.
Following the controversy, the Sebi launched an investigation into both Hindenburg and the Adani Group.
In June 2024, Hindenburg received a "show-cause notice" from Sebi. This notice outlined potential violations of regulations related to their research report and short-selling activity. In response, Hindenburg maintained that their research report was based on extensive due diligence and publicly available information. They argued their short-selling activity followed all legal and regulatory procedures in India.
[The Business Standard]
