Adani Group Exonerated by SEBI: Hindenburg Claims Declared Baseless in Landmark Verdict

Image Source: The Economic Times

In a high-stakes regulatory showdown concluding September 18, 2025, the Securities and Exchange Board of India (SEBI) has completely dismissed the serious allegations made by US short-seller Hindenburg Research against the Adani Group. Clearing Chairman Gautam Adani and his conglomerate of all charges including insider trading, market manipulation, and violations of related-party transaction (RPT) norms, SEBI's meticulously documented final orders bring closure to a contentious saga that began with Hindenburg’s explosive report in January 2023. This ruling reaffirms the group's long-standing stance that the claims were unfounded and marks a new chapter for the group’s reputation in Indian capital markets.

Key Highlights from SEBI’s Ruling and Investigation:

SEBI found no evidence of any fraudulent, manipulative, or unfair trade practices by Adani Group companies or executives during the investigation spanning FY 2018-19 to FY 2022-23.
The alleged transactions for routing funds through entities like Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure were deemed genuine business dealings and not related-party transactions under the regulatory definitions applicable at the time.
SEBI noted that the amendments broadening related-party transaction definitions came into effect only in April 2022 and could not be applied retrospectively to earlier deals, aligning with the Supreme Court-appointed expert panel’s earlier findings.
All loans and transactions in question were repaid with interest well within the investigation period, and there was no diversion or siphoning of funds.
SEBI explicitly stated that none of the allegations in the show-cause notice were established, resulting in no penalties or liabilities for the group or its key individuals.

Unpacking SEBI’s Conclusions and Their Significance
The SEBI verdict put to rest accusations that Adani Group manipulated stock prices or engaged in deceptive financial practices through related-party transactions. The regulator emphasized that the business dealings involving the entities mentioned did not qualify as related-party transactions under the Securities Market laws and rules effective at the time of transactions, thus negating a key allegation of undisclosed related-party dealings.

Adding legal heft, the Supreme Court had previously upheld the validity of SEBI’s 2021 amendments to Listing Obligations and Disclosure Requirements (LODR) Regulations, specifically noting their prospective nature and rejecting arguments for retrospective application. SEBI reiterated this position, underscoring adherence to the established legal framework.

Gautam Adani’s Response: Transparency, Integrity, and Investor Empathy
Following the release of SEBI’s final orders, Gautam Adani expressed relief and reaffirmed the group’s commitment to transparency and integrity. He acknowledged the pain experienced by investors who suffered financial losses due to the initial Hindenburg report, describing it as a fraudulent and motivated document that distorted realities unfairly.

Adani called for a national apology from those who propagated false narratives, underscoring the group’s ongoing commitment to India’s institutions, nation-building, and ethical business practices.

The Impact on Markets and Investor Sentiment
The Hindenburg report had rattled markets significantly, leading to a sharp fall in Adani Group’s stock prices and wiping out approximately $150 billion in market capitalization at its peak impact. SEBI’s clearance is expected to restore confidence in the group’s governance and financial practices, potentially stabilizing market sentiments around its listed entities.

This verdict not only clears a cloud of suspicion from the Adani Group but also reinforces SEBI’s role as a robust market watchdog capable of conducting nuanced, fair, and detailed probes into complex allegations.

Contextual Background: The Hindenburg Report and Initial Fallout
On January 24, 2023, Hindenburg Research published a sensational report accusing the Adani Group of orchestrating the largest corporate fraud in history through stock manipulation, accounting irregularities, and the use of offshore shell companies. The report alleged violations of public shareholding rules and warned about high debt levels and opaque related-party deals, triggering sharp market corrections and significant investor apprehension.

Despite repeated denials by the group and legal challenges, the controversy had lingered with market watchers awaiting SEBI’s definitive verdict. Today’s final orders represent the regulator’s comprehensive conclusion after multiple months of scrutiny, legal examinations, and expert panel reviews.

Final Perspectives and Looking Ahead
SEBI’s conclusive orders dated September 18, 2025, send a strong message that allegations must be supported by clear evidence and regulatory definitions must be respected as per their effective timelines. With the Adani Group’s name cleared publicly, the focus is likely to shift towards rebuilding trust, enhancing transparency further, and reinforcing governance frameworks across Indian corporates.

The case stands as a landmark in Indian financial regulatory history, demonstrating the vigilance and rigor of the country’s securities market watchdog and reaffirming the principle of fairness in handling high-profile market controversies.

Source: Latest news reports from Indian Express, NDTV, Business Today, The Tribune, and official SEBI orders as of September 18, 2025