India’s securities regulator, the Securities and Exchange Board of India (SEBI), is investigating whether the Adani Group violated market disclosure requirements regarding potentially market-sensitive information. Sources familiar with the matter revealed that SEBI is scrutinizing whether Adani Green Energy Ltd. failed to disclose an investigation by the US Department of Justice into bribery allegations involving the company.
As per the information the report which revealed that US prosecutors were investigating whether individuals linked to the Adani Group, including its chairman Gautam Adani, were involved in paying bribes for favourable treatment on an energy project in India. In response, Adani Group denied any knowledge of the investigation, asserting full compliance with anti-bribery laws. Additionally, Adani Green Energy’s filing to Indian stock exchanges on March 19 stated that the company was aware of the investigation but clarified that it involved an unrelated third party.
Arrest warrant by US Jury
However, on Wednesday, US prosecutors charged Gautam Adani in connection with a $250 million bribery scheme tied to solar energy contracts in India. They also accused the Adani Group of concealing this scheme while attempting to raise funds from US investors. The Adani Group denied these charges, calling them false.
SEBI initiated the probe following the Transparency Practices
SEBI’s fact-finding process is expected to continue for the next two weeks, after which the regulator will determine whether to launch a formal investigation. This inquiry is part of SEBI’s ongoing scrutiny of the Adani Group, which has previously faced investigations over similar disclosure concerns, including those raised after the Hindenburg Research report last year. While SEBI can only pursue civil charges in such cases, violations of disclosure rules could lead to monetary penalties.
Stock exchanges in India, including the BSE and NSE, play a key role in enforcing SEBI’s disclosure rules. Adani Group shares saw a significant drop following the US indictment, with Adani Enterprises losing up to 23% on Thursday, before recovering slightly on Friday. Neither SEBI, the BSE, nor the NSE have commented on the matter as of now.
