The Indian Express (Delhi Edition)

Seven listed Adani Group entities received Sebi notices in FY24

SEVEN OF the 10 listed entities of Adani Group have said that they received show cause notices from the markets regulator, Securities and Exchange Board of India (Sebi), in the previous fiscal for violations of certain regulation­s, including non-compliance of listing and related party transactio­n norms. The companies, however, said that there were “no material consequent­ial effect” of the show cause notice son their financial statements.

The Adani Group’s flagship company, Adani Enterprise­s, A dani green energy, a dani power, Adani Energy Solutions, Adani Total Gas and Adani Wilmar received the Sebi notices in the Q4 Fy 24, the companies said in separate filings to stock exchanges. A dani ports and logistics said it received the notice in FY 24.

“During the quarter ended March 31,2024, the company has received two show cause notices (Scns) from these bi alleging non compliance of provisions of the Listing Agreement and LODR Regulation­s pertaining to related party transactio­ns in respect of certain transactio­ns with third parties and validity of peer review certificat­es of statutory auditors with respect to earlier years,” Adani Enterprise­s informed exchanges recently. It said the management believes that there was no material consequent­ial effect of the Sebi notices to relevant financial statements and no material non-compliance of applicable laws and regulation­s. None of the seven companies gave further details of the violations of Sebi norms mentioned in the show cause notices. a dani green energy said it got a notice from Sebi relating to the validity of Peer Review Certificat­e( prc)ofo ne of the joint auditors in earlier financial years, which it responded to.

In january 2023, the us-based short seller Hindenburg Research in a report accused the Adani Group of brazen stock manipulati­on and accounting fraud, which the company denied. Later, writ petitions were filed with the Supreme court( sc) seeking independen­t investigat­ion of the allegation­s in hindenburg’ s report allegation­s. in march 2023, the apex court formed an expert committee to investigat­e whether there was a regulatory failure in dealing with the alleged contravent­ion of laws pertaining to the securities market by the Adani Group or other group companies. as per the status report of the SC, dated August 25,2023, these bi also concluded its investigat­ions in twenty-two of the twenty-four matters.

In january this year, the sc disposed-off all matters in various petitions, including those relating to separate independen­t investigat­ionsinto the allegation­s and directed se bi to complete the pending two investigat­ions, within three months, and take its investigat­ions( including 22 already completed) to their logical conclusion.