SEBI Clears Adani Group of Hindenburg's Related-Party Transaction Allegations
The Securities and Exchange Board of India (SEBI) has cleared Gautam Adani and Adani Group entities of allegations made by Hindenburg Research regarding illicit fund routing through related parties. In its final orders, SEBI concluded that the challenged transactions did not qualify as related-party dealings under the regulations applicable at the time. The regulator found no evidence of fraud or siphoning of funds, noting that loans were repaid with interest, and has consequently dropped all related proceedings against the conglomerate.
Unpacked:
Hindenburg Research alleged that the Adani Group engaged in stock manipulation, accounting fraud, and illicit fund routing through related parties, labeling it one of the largest corporate frauds in history. These claims led to significant financial and reputational impacts for the conglomerate in early 2023.
The SEBI investigation began after the Hindenburg report in January 2023. The Supreme Court granted SEBI more time to complete its probe in January 2024. SEBI’s final orders, clearing Adani, came after more than a year of inquiries, with proceedings dropped in mid-2025.
Hindenburg Research has continued to question both Adani Group and SEBI’s integrity, recently alleging conflicts of interest involving SEBI’s chief. Political opposition in India has demanded further investigations, but SEBI and Adani have repeatedly dismissed these accusations as baseless.
Adani Group’s share prices fell sharply after the Hindenburg report in January 2023 but recovered by mid-2024. The group announced major new investments, and Gautam Adani regained his position among the world’s richest individuals. The company’s financial stability was largely restored.