New Delhi : The Adani Group, already embroiled in legal challenges in the United States, now faces intensified scrutiny from India’s Securities and Exchange Board of India (SEBI). After the US Department of Justice (DOJ) filed a chargesheet on November 21 accusing Adani Group Chairman Gautam Adani and seven others of engaging in bribery to secure business deals in India, SEBI has launched its own probe into potential violations of disclosure norms by the conglomerate.
SEBI Seeks Answers on Disclosure Norms
SEBI has directed Indian stock exchanges to seek detailed information from Adani Group companies regarding adherence to listing obligations and disclosure requirements (LODR). The investigation revolves around whether Adani entities failed to disclose the DOJ’s ongoing investigation and its implications in a timely and transparent manner.
On November 20, US authorities named Gautam Adani and his nephew Sagar Adani as accused, alleging the group provided misleading statements about their awareness of investigations by the DOJ and the Securities and Exchange Commission (SEC). While the Adani Group has strongly denied these allegations, labeling them as baseless, SEBI’s probe aims to uncover whether Indian investors were kept in the dark about the matter.
Potential Consequences of Disclosure Lapses
According to a report by Business Standard, if SEBI finds lapses or delays in disclosures, it could lead to advisories or even enforcement actions against the group. “The exchanges have sought clarifications and are awaiting Adani Group’s response, especially regarding compliance with LODR norms,” a source familiar with the matter revealed.
The Adani Group’s alleged failure to notify the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) about the DOJ investigation in March 2024 is a focal point of concern. At the time, the group had claimed no notice had been received by Adani Green Energy, despite knowledge of the ongoing probe.
Allegations of Misinformation
The US Justice Department has accused the Adani Group of intentionally providing false information to the media and regulators. Specifically, it alleges that senior officials within the group were aware of investigations by multiple US agencies but publicly denied any knowledge.
In response to the accusations, the Adani Group has vowed to use all legal avenues to challenge the charges. “We categorically deny the allegations and will robustly defend our position,” the company stated in its official response.
A Long Road Ahead
Sources suggest that while SEBI is actively monitoring the situation, any enforcement actions could take considerable time. “Such investigations are complex and involve multiple regulatory layers,” an insider explained.
Global Implications
This controversy comes at a critical time for the Adani Group, which has been expanding its global footprint. The allegations, coupled with regulatory scrutiny in India, have cast a shadow over the conglomerate’s reputation and investor confidence.
As SEBI’s investigation unfolds, the case underscores the importance of transparency and compliance for Indian corporations operating on an international scale. Market watchers and investors are closely monitoring how the Adani Group navigates this crisis, which could have far-reaching implications for its future operations.
