Market Regulator SEBI Exonerates Gautam Adani In Hindenburg Case

Markets regulator Securities and Exchange Board of India (SEBI) on Thursday dismissed allegations of stock manipulation made by U.S. short-seller Hindenburg Research against billionaire Gautam Adani and his group companies, including Adani Ports and Adani Power.

According to an order dated September 18, 2025, SEBI said that a detailed probe found no violations by the listed entities and the individuals and hence the proceedings have been disposed without any direction.

"There is no violation of Listing Agreement or SEBI (LODR) Regulations as the impugned transactions do not qualify as related party transactions,” SEBI noted. 

The capital market regulator was probing the allegation made by Hindenburg that Adani Enterprises and Adani Power Mundra (now merged with Adani Power Ltd) were funded by Milestone Tradelinks and Rehvar Infrastructure via Adani Infra (India) in the fiscal year 2020-21. The US-based short seller questioned the original source of funds of Milestone Tradelinks and Rehvar Infrastructure.

"Accordingly, having considered the matter holistically, I find that the allegations made against Noticees in the SCN are not established. Considering the above, the question of devolvement of any liability on Noticees does not arise and hence the question of determination of quantum of penalty also does not require any deliberation. I, therefore,... hereby dispose of the instant proceedings against Noticees without any direction," according to the SEBI order passed by whole time member Kamlesh Varshney.

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The regulator carried out a detailed investigation in the matter to ascertain any possible material misrepresentation or misstatement in the financial statements, attempt to circumvent provisions of the SEBI Act, 1992, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 or any other rules or regulations, as per the market watchdogs order. 

(This Is A Developing Story)