Adani Group Cleared by SEBI in Minimum Public Shareholding Case
SEBI has ended its proceedings against Gautam Adani, four Adani Group entities and 13 people for alleged violations of minimum public shareholding (MPS) requirements. The parties paid Rs 1.48 crore to resolve the proceedings without accepting or contesting the conclusions.
On September 28, the Adani Group chairman Gautam Adani, along with four group firms and thirteen others, were exempted from proceedings that had been initiated by SEBI, the market regulator.
A settlement of INR 1.48 crore was made in response to proceedings that were started due to alleged breaches of minimum public shareholding (MPS) regulations. This clearance extends to the following entities and their respective directors: Adani Enterprises Ltd, Adani Power Ltd, Adani Ports and Special Economic Zone Ltd, and Adani Transmission Ltd, now called Adani Energy Solutions Ltd.
SEBI Highlighted Adani Group’s Breach in 2020
The actions were initiated due to SEBI receiving complaints in June and July 2020 regarding alleged non-compliance with MPS regulations by specific listed Adani Group entities. On October 23, 2020, SEBI began an investigation after a preliminary review. The regulator sent out a show-cause notice (SCN) on September 27, 2024, after the inquiry was finished, and a supplementary SCN on March 3, 2025.
The notifications claimed that there had been infractions of the MPS regulations set out by SEBI, the Listing Obligations and Disclosure Requirements (LODR) Regulations, the former Listing Agreement, and the Securities Contracts (Regulation) Rules. Thereafter, the applicants wanted to conclude the proceedings without stating whether or not the facts and legal findings were true. The applicants paid a total of INR 1.48 crore in accordance with the ruling imposed on 28 September. As a result, SEBI ordered that the SCN and supplemental SCN procedures be concluded.
SEBI Keeping a Close Eye on the Adani Group
This is not the first time Adani Group has come under the tight scanner of SEBI. On September 22, five companies, including four Adani Group firms, were settled in adjudication proceedings by market regulator SEBI. Together, the companies paid INR 1.50 crore to satisfy claims that they failed to disclose certain related-party transactions. These actions were initiated as a result of SEBI's review of the corporate governance issues and claims brought up in the Hindenburg report.
These concerns included potential violations of the listing laws and the previous listing agreement. Based on the settlement decision from SEBI, the entities in question are Adani Enterprises, Adani Total Gas, AWL Agri Business (formerly Adani Wilmar), Adani Green Energy, and Adani Energy Solutions (previously Adani Transmission).
In the wake of the Hindenburg report, the markets regulator began investigating claims involving the Adani Group's corporate governance, transparency, and related-party transactions (RPTs). Seven entities in the Adani Group, including Adani Power and Adani Ports & SEZ, were investigated by the regulator.
A diverse commercial conglomerate, the Adani Group has holdings in a wide variety of industries, including transportation, electricity, renewable power, airports, cement, infrastructure, data centers, and natural resources.
