Overseeing numerous accusations directed at Adani, the Indian regulator continues its examination, as reported by sources.
The Adani Group, a conglomerate that includes infrastructure giants such as Adani Ports, Adani Power, and flagship Adani Enterprises, has seen a positive response from the market following the dismissal of a dozen investigations by India's market regulator, SEBI.
On Friday, shares of all nine listed group companies rose in reaction to the regulator's dismissals a day earlier. Adani Enterprises was up 6%, while Adani Power saw a 12.7% jump. The stocks of the Adani Group have since recovered from the initial sell-off that followed accusations made against the group.
The allegations, made by an unspecified source with direct knowledge of the investigations, included improper use of tax havens and stock price manipulation. However, the at least dozen dropped SEBI investigations primarily concern Gautam Adani and key executives within the Adani Group.
SEBI's communications department did not immediately respond to requests for comment. The Adani Group, owned by billionaire Gautam Adani, has regularly dismissed all allegations by Hindenburg Research as baseless.
In July and August, around 30 Adani group entities reported wrongful categorisation allegations to the watchdog in their financial statements. Two specific allegations, one of stock manipulation and the other non-disclosure of related party transactions, made by U.S. short-seller Hindenburg Research were dismissed by SEBI on a recent day.
However, there are at least over a dozen cases still pending for final orders against the Adani Group. The Adani Group did not immediately respond to emailed questions about the report of continuing investigations on the day in question.
The initial accusations led to a $150-billion sell-off of the group's stocks. But with the dismissal of these investigations, the Adani Group seems to have regained some confidence from the market. It remains to be seen how these ongoing investigations will unfold in the future.
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