Adani shares dip on fresh allegations by Hindenburg involving SEBI chair

Adani Group shares: The shares of Adani Group listed companies dipped on Monday after fresh allegations by New York-based short-seller Hindenburg Research. Adani Group's flagship company Adani Enterprises saw its shares drop nearly 5 per cent, while other group companies, including Adani Ports, Adani Total Gas, Adani Green, Adani Power, Adani Wilmar, and Adani Energy Solutions, faced declines ranging from 3 per cent to 8 per cent.

In a report released on Saturday, Hindenburg claimed that Madhabi Puri Buch, the head of Securities and Exchange Board of India (SEBI), previously held investments in offshore funds linked to the Adani Group.

In a statement on Sunday, Buch clarified that all necessary disclosure requirements had been strictly followed. She said that the investments mentioned in the Hindenburg report were made in 2015, in a private capacity, and two years before she assumed her role at SEBI.

The Adani Group also responded on Sunday, firmly rejecting the allegations and maintaining that its overseas holding structure is fully transparent.

Market experts have taken varied positions on the Hindenburg developments. While some have claimed that there will be no holistic mid-term or long term impact on the markets, others see it as an interim deterrence of market confidence. “Under Buch's leadership, SEBI has implemented numerous measures to protect retail investor sentiment. However, these recent allegations could potentially impact market confidence," said Anita Gandhi, founder and head of institutional business at Arihant Capital Markets.

In January 2023, Hindenburg Research had released a report accusing the conglomerate of improper use of tax havens and stock manipulation, which led to a significant drop in Adani's stock prices. The Adani Group has consistently denied these allegations. In July 2024, the Supreme Court of India passed a verdict refusing to transfer the probe against Adani Group to a special investigation team or the Central Bureau of Investigation.

The apex court in it its verdict said market regulator SEBI was conducting a “comprehensive investigation” into the allegations and its conduct “inspires confidence”.