India's regulatory body for financial markets has dismissed fraud allegations against all the key companies under Gautam Adani, chairman of Indian conglomerate Adani Group, levelled by US investment firm Hindenburg Research.
Adani, one of India's biggest companies operating in power generation, ports, renewable energy, coal, gas and hydrogen, has been under scrutiny since Hindenburg Research accused it of market manipulation and accounting fraud in early 2023.
The Securities and Exchange Board of India (Sebi) on 18 September said that none of the charges in the show-cause notice could be proven and confirmed there was no violation of the Sebi Act concerning fraudulent or unfair trade practices.
The alleged transactions were deemed genuine business dealings and not fraudulent or in violation of related party transaction disclosure norms, given the legal framework applicable during the investigation period, Sebi said in two separate orders.
The verdict has supported share price of all listed Adani companies in the Indian stock exchange at market open today. The firm is also likely spark renewed interest from foreign investors that previously stalled their investment since the allegations, analysts said.
French refiner TotalEnergies halted any investment in Adani until the "accusations against the Adani Group individuals and their consequences have been clarified", it said in November 2024.
The US Securities and Exchange Commission (SEC) had charged two Adani Enterprises executives with bribery earlier in the same month for orchestrating a bribery scheme involving paying Indian government officials to secure their commitment to purchase energy at above-market rates.
TotalEnergies limited exposure to Adani's companies and was also re-evaluating its stakes in Adani Green Energy and Adani Total Gas following fraud allegations against the Indian conglomerate.
TotalEnergies has a 19.75pc stake in Adani's biofuels arm Adani Green Energy, and has 50pc stakes in three joint ventures operating renewable assets.
TotalEnergies also has a 37pc stake in Adani Total Gas, which supplies natural gas to Indian domestic and commercial consumers, and a 20pc stake in renewable energy firm Adani New Industries.
