India’s Supreme Court says the Adani Group does not need to face more investigations beyond the current scrutiny of the market regulator, a major relief for the conglomerate hit hard by a United States-based shortseller’s allegations of wrongdoing.
The Securities and Exchange Board of India (SEBI) has been probing the Adani Group, led by billionaire Gautam Adani, after Hindenburg Research in January 2023 alleged the improper use of tax havens and stock manipulation by the group.
The Adani Group denied the allegations, but Hindenburg’s report still chopped $150bn off its stock market value.
Though some investor confidence returned in recent months as Adani won the backing of bankers and investors, the Hindenburg report and the regulatory scrutiny have weighed on the group’s business dealings and reputation.
The Supreme Court, which was ruling on cases brought by public interest litigants seeking a special investigation team to probe the matter, on Wednesday said “the facts of this case do not warrant” such a change, even though the court had the powers to transfer the investigation.
The verdict signals there will not be increased regulatory or legal risk on the Adani Group beyond the current SEBI investigation.
Reflecting that view, shares of various Adani Group companies rose, with Adani Energy Solutions up 9.1 percent, Adani Total Gas surging 7.1 percent, Adani Green Energy jumping 5.5 percent and the flagship business Adani Enterprises rising 2.6 percent, Reuters news agency reported.
Source: Aljazeera
