Bengaluru: India’s Securities and Exchange Board (SEBI) has formally dismissed allegations of stock manipulation brought against the Adani Group by U.S.-based short-seller Hindenburg Research. In a detailed order released on Thursday, the regulator concluded that the charges were legally unsustainable and not backed by sufficient evidence.
The controversy dates back to January 2023, when Hindenburg published a scathing report accusing the Adani conglomerate of hiding related-party transactions, using opaque tax haven structures, and misleading investors about its financial practices. The allegations triggered one of the sharpest market shocks in recent years, with Adani’s listed companies losing nearly US$150 billion in market capitalization within weeks of the report’s release.
In its ruling, SEBI noted that the transactions in question did not qualify as related-party dealings under Indian corporate governance norms. Consequently, the regulator stated there was no case of non-disclosure or market manipulation as alleged. The order effectively brings to a close one of the most closely watched regulatory investigations in India’s corporate history.
While the Adani Group has consistently denied wrongdoing since the controversy first erupted, Thursday’s decision provides significant relief for the ports-to-power conglomerate. Analysts suggest that the regulator’s clean chit may help restore investor confidence and stabilize the group’s stock prices, which have largely recovered since their initial plunge in 2023.
Despite the outcome, the episode has left a lasting imprint on India’s financial markets. The Hindenburg report had sparked widespread debate about the effectiveness of corporate disclosures, the robustness of SEBI’s oversight, and the influence of short-sellers in emerging economies. Critics of the Adani Group had argued that the case raised red flags about concentrated corporate power and governance standards in India.
Adani representatives have so far declined to comment on SEBI’s announcement. However, market observers believe the group may use the ruling to reinforce its global credibility, particularly as it continues to attract foreign investments across infrastructure, green energy, and logistics.
For SEBI, the case underscores the growing challenge of balancing market transparency with protecting companies from unverified external attacks. While the regulator’s ruling closes this chapter, the broader debate over regulatory vigilance and investor protection in India’s fast-growing capital markets is set to continue.