SEBI dismisses Hindenburg Research allegations against Adani group, says flagged transactions were legal under laws of that time
The Securities and Exchange Board of India (SEBI) on Thursday dismissed allegations of stock manipulation against Gautam Adani and his group of companies made by U.S. short-seller Hindenburg Research. In its conclusion, SEBI said that there is no violation of listing agreement or SEBI Listing Obligations and Disclosure Requirements (LODR). It added that the impugned transactions do not qualify as “related party transactions”. The SEBI said that reading of Listing Agreement and SEBI (LODR) Regulations reveals that transactions between a listed company with unrelated party is not covered within the definition of “related party transactions” as it existed during the time when impugned transactions took place. However, it was included specifically after a 2021 amendment. Hindenburg had alleged that Adani entities used Milestone and Rehvar as conduits to funnel money, avoiding disclosure as related party loans. SEBI found that while funds were indeed rotated via Milestone and Rehvar, all loans were genuine, interest-bearing, and repaid. At the time, the LODR definition of RPTs did not cover such indirect transactions. While an amendment in 2021 included such transactions, it was prospective, not retrospective. SEBI added that the Supreme Court had rejected the plea of the petitioner and held that procedure followed in arriving at the current shape of regulations is not tainted with any illegality. The Supreme Court had also said that no valid grounds have been raised to direct SEBI to revoke its amendments to the SEBI(LODR) Regulations. SEBI said that there is no violation of Section 12A of the SEBI Act and SEBI-Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (PFUTP) Regulations as alleged. It concluded that no fraud, misrepresentation, or siphoning of funds was proven and all funds were returned with interest. Therefore, the allegations in Show cause Notice were not established. SEBI concluded that no liability or penalties were imposed on Adani Group entities or individuals and the proceedings were disposed of without directions. Allegations against Gautam Adani, Rajesh Adani, and CFO Jugeshinder Singh were not sustained, as there was no evidence of deliberate concealment or fraud. In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. After that, SEBI had launched a probe on Adani group companies, including Adani Ports, Adani Power and Adani Enterprises. After the SEBI report, Gautam Adani posted on X: “After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group.” After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent… pic.twitter.com/8YKeEYmmp5— Gautam Adani (@gautam_adani) September 18, 2025 He added, “We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology.” The Adani group has repeatedly denied all the accusations in the Hindenburg Research report.
The Securities and Exchange Board of India (SEBI) on Thursday dismissed allegations of stock manipulation against Gautam Adani and his group of companies made by U.S. short-seller Hindenburg Research. In its conclusion, SEBI said that there is no violation of listing agreement or SEBI Listing Obligations and Disclosure Requirements (LODR). It added that the impugned transactions do not qualify as “related party transactions”.
The SEBI said that reading of Listing Agreement and SEBI (LODR) Regulations reveals that transactions between a listed company with unrelated party is not covered within the definition of “related party transactions” as it existed during the time when impugned transactions took place. However, it was included specifically after a 2021 amendment.
Hindenburg had alleged that Adani entities used Milestone and Rehvar as conduits to funnel money, avoiding disclosure as related party loans. SEBI found that while funds were indeed rotated via Milestone and Rehvar, all loans were genuine, interest-bearing, and repaid. At the time, the LODR definition of RPTs did not cover such indirect transactions. While an amendment in 2021 included such transactions, it was prospective, not retrospective.
SEBI added that the Supreme Court had rejected the plea of the petitioner and held that procedure followed in arriving at the current shape of regulations is not tainted with any illegality. The Supreme Court had also said that no valid grounds have been raised to direct SEBI to revoke its amendments to the SEBI(LODR) Regulations.
SEBI said that there is no violation of Section 12A of the SEBI Act and SEBI-Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (PFUTP) Regulations as alleged. It concluded that no fraud, misrepresentation, or siphoning of funds was proven and all funds were returned with interest. Therefore, the allegations in Show cause Notice were not established.
SEBI concluded that no liability or penalties were imposed on Adani Group entities or individuals and the proceedings were disposed of without directions. Allegations against Gautam Adani, Rajesh Adani, and CFO Jugeshinder Singh were not sustained, as there was no evidence of deliberate concealment or fraud.
In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. After that, SEBI had launched a probe on Adani group companies, including Adani Ports, Adani Power and Adani Enterprises.
After the SEBI report, Gautam Adani posted on X: “After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group.”
After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group.
— Gautam Adani (@gautam_adani) September 18, 2025
We deeply feel the pain of the investors who lost money because of this fraudulent… pic.twitter.com/8YKeEYmmp5
He added, “We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology.”
The Adani group has repeatedly denied all the accusations in the Hindenburg Research report.
