SEBI allows Gautam Adani, four group firms to settle shareholding violation case for Rs 1.4 crore
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The Securities and Exchange Board of India on Monday cleared Adani Group chairperson Gautam Adani, four companies of the conglomerate and 13 others in proceedings related to alleged violation of minimum public shareholding norms by paying a settlement amount of Rs 1.4 crore.
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In India, listed companies must maintain a minimum public shareholding of 25%.
The securities market regulator had initiated proceedings against Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone, and Adani Transmission, now known as Adani Energy Solutions, as well as their directors, after receiving complaints in June 2020 and July 2020 that they had failed to comply with the rule.
In its settlement order, SEBI has not made any mention of the regulatory finding on the alleged violations.
The proceedings were part of the 24 investigations that the regulator undertook against the Adani Group after American short-seller Hindenburg Research published a report in January 2023 accusing the Adani Group of pulling off the “largest con in corporate history” through accounting fraud, money laundering and stock price manipulation, reported Reuters.
The Adani Group rejected the allegations, but the report pummelled the stocks of its listed companies and wiped out more than $100 billion of investors’ money at the time.
Vinod Adani cleared
On Monday, the regulator also cleared Vinod Adani, the elder brother of Gautam Adani, of allegations that he controlled...