SEBI Issues Show Cause Notices to Seven Adani Group Companies for Regulatory Violations In Fiscal Year 2024

In fiscal year 2024, seven of the ten listed Adani Group companies received show cause notices from the Securities and Exchange Board of India (SEBI) for violations including non-compliance with listing agreements and related party transaction norms. \r

Despite these allegations, the companies reported no significant impact on their financial statements. The affected entities—Adani Enterprises, Adani Green Energy, Adani Power, Adani Energy Solutions, Adani Total Gas, Adani Wilmar, and Adani Ports and Logistics—disclosed the notices to stock exchanges. \r

Adani Enterprises received two notices concerning non-compliance with the Listing Agreement and SEBI's LODR Regulations, involving transactions with third parties and auditor certificate validity. Adani Green Energy received scrutiny over a Peer Review Certificate (PRC) for a joint auditor, which it addressed. This regulatory attention follows a report by US-based short-seller Hindenburg Research in January 2023, alleging stock manipulation and accounting fraud by the Adani Group, which the group denied, leading to a 65% stock decline. \r

The Supreme Court responded by forming an expert committee led by Justice A.M. Sapre to investigate. By August 2023, SEBI had completed 22 of 24 investigations. In January 2024, the Supreme Court directed SEBI to finalize the remaining investigations within three months.