Seven of Adani Group ten listed entities have stated that they received show cause notices from the markets regulator, the Securities and Exchange Board of India (SEBI), in the previous fiscal year for violations of certain regulations, including non-compliance with listing and related party transaction norms.
However, the corporations stated that the showcause notices had “no material consequential effect” on their financial statements.
Adani Group Flagship Company got SEBI Notices:
Adani Enterprises, Adani Green Energy, Adani Power, Adani Energy Solutions, Adani Total Gas, and Adani Wilmar, the Adani Group’s flagship company, got SEBI notices in the fourth quarter of FY2024 for violations of several regulations, according to separate filings with stock exchanges. Adani Ports and Logistics stated that it received the notification in FY24.
“During the quarter ended March 31, 2024, the Company has received two show cause notices (SCNs) from the SEBI alleging non-compliance of provisions of the Listing Agreement and LODR Regulations pertaining to related party transactions in respect of certain transactions with third parties and validity of peer review certificates of statutory auditors with respect to earlier years,” Adani Enterprises said in a recent exchange.
SEBI Notices Had No Major Impact:
It stated that the management thinks that the SEBI notices had no major impact on relevant financial statements. There was no material noncompliance with applicable laws and regulations. None of the seven companies provided additional information about the infringement of SEBI regulations specified in the show cause notices.
Here’s the Statement by Adani Green Energy:
Adani Green Energy stated that it received a notice from SEBI regarding the validity of one of the joint auditors’ Peer Review Certificate (PRC) from previous financial years, to which it responded.
In a January 2023 research, US-based short seller Hindenburg Research accused the Adani Group of flagrant stock manipulation and accounting fraud, which the firm disputed.
Violation of Securities Market Regulations By Adani Group:
Later, writ petitions were filed with the Supreme Court requesting an independent investigation of the charges in Hindenburg’s report allegations. In March 2023, the Supreme Court appointed an expert committee, led by its former judge Justice A M Sapre, to investigate if there was a regulatory failure in dealing with the suspected violation of securities market regulations by the Adani Group or other group entities. According to the Supreme Court’s progress report dated August 25, 2023, the SEBI completed investigations in twenty-two of the twenty-four issues.
The Supreme Court dismissed all matters raised in various petitions, including those relating to separate independent investigations into the allegations in the Hindenburg Report. Requiring SEBI to complete the pending two inquiries within three months. Also Bring its investigations (including 22 already completed) to a logical conclusion.
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