India’s markets watchdog dismisses allegations of stock manipulation, sparking a surge in shares but with 22 probes still pending, questions linger over full regulatory closure, making a major Adani Group market regulator.
Mumbai, India – On Thursday, 18 September, 2025, the Securities and Exchange Board of India (SEBI) dismissed key allegations of stock manipulation and related-party transaction violations levelled by US-based short-seller Hindenburg Research against the Adani Group and its chairman, Gautam Adani.
This decision, announced in two separate orders by SEBI’s whole-time member Kamlesh Chandra Varshney, cleared Adani Group firms including Adani Ports & Special Economic Zone Ltd, Adani Power Ltd, and Adani Enterprises Ltd, as well as individuals such as Gautam Adani and his brother Rajesh Adani.
The probe, initiated in 2023 following Hindenburg’s report accusing the conglomerate of using offshore entities to conceal transactions, found no evidence of fraud or disclosure breaches. In response, Adani Group stocks rose sharply on Friday, 19 September, 2025, with gains of up to 10 per cent, reflecting renewed investor confidence amid ongoing scrutiny by the Adani Group market regulator 2025 landscape.
Why it Matters for South Asia
The Adani Group, a cornerstone of India’s infrastructure sector with extensive operations in ports, power, and renewables, plays a pivotal role in South Asia’s economic connectivity. SEBI’s clearance alleviates a major overhang from the 2023 Hindenburg fallout, which erased approximately $150 billion (about ₹12.6 trillion) in market value and rattled regional investor sentiment. For South Asian markets, where Indian conglomerates like Adani Group influence cross-border trade and energy projects such as ports in Sri Lanka and Bangladesh, this ruling bolsters stability. However, with 22 other SEBI orders pending, it underscores the need for robust regulatory oversight to prevent volatility in emerging economies.
SEBI’s Verdict: Dismissing the Core Allegations
SEBI’s investigation, spanning 2018 to 2023, scrutinised claims that Adani Group entities routed funds through three lesser-known firms, Adicorp Enterprises Pvt Ltd, Milestone Tradelinks Pvt Ltd, and Rehvar Infrastructure Pvt Ltd to mask related-party transactions and inflate share prices. Hindenburg’s January 2023 report alleged these dealings, totalling around ₹620 crore ($74 million), violated disclosure norms under SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations.
In its orders, SEBI concluded that the transactions did not qualify as related-party dealings under the rules applicable at the time. “Having considered the matter holistically, I find that the allegations made against Noticees in the SCN [show cause notice] are not established,” Varshney stated. The regulator noted that the loans were repaid with interest before the probe began, with no evidence of siphoning or misrepresentation in financial statements. As a result, SEBI disposed of the proceedings without penalties, exonerating the involved parties from charges under Section 12A of the SEBI Act and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations.
Gautam Adani, chairman of the Adani Group, welcomed the outcome on social media platform X: “SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group.” He added that the group “deeply feels the pain of the investors who lost money because of this fraudulent and motivated report” and called for an apology from those spreading “false narratives.”
This marks a significant milestone in the Adani Group market regulator 2025 saga, where SEBI’s role as the primary overseer has been central. While the decision vindicates the conglomerate’s denials since 2023, it pertains only to these specific charges; broader aspects of the Hindenburg probe, including potential insider trading and public shareholding norms, remain under review.
Adani Shares Rise: Market Reaction and Key Gainers
The news catalysed a broad-based rally in Adani Group equities on the Bombay Stock Exchange and National Stock Exchange, with SEBI clears Adani shares rise becoming a focal point for traders. By 3:00 PM IST on Friday, 19 September, 2025, nine listed entities posted gains ranging from 1 per cent to 10 per cent, adding over ₹50,000 crore ($595 million) to the group’s combined market capitalisation.
| Company | Ticker | Gain (%) | Closing Price (₹) | Notes |
| Adani Total Gas Ltd | ADAG.NS | 10.0 | 650.50 | Led the surge on high trading volume |
| Adani Power Ltd | ADAN.NS | 9.6 | 685.20 | Boosted by Morgan Stanley’s “overweight” rating, projecting 2.5x capacity growth by FY33 |
| Adani Enterprises Ltd | ADEL.NS | 4.4 | 3,120.00 | Flagship firm rebounds from 2023 lows |
| Adani Green Energy Ltd | ADNA.NS | 3.9 | 1,850.75 | Reflects optimism in renewables arm |
| Adani Energy Solutions Ltd | ADAI.NS | 3.8 | 1,120.40 | Steady gains amid energy sector tailwinds |
| Adani Ports & SEZ Ltd | APSE.NS | 2.8 | 1,450.60 | Core ports business sees relief rally |
| Adani Wilmar Ltd | AWL.NS | 3.0 | 345.80 | Agri arm benefits from broader sentiment |
Adani Power’s ascent was particularly notable, supported by analyst upgrades forecasting threefold EBITDA expansion by fiscal 2033, driven by new coal power purchase agreements. Overall, the Adani Group market regulator 2025 developments triggered short-covering and relief buying, though analysts caution that sustained momentum hinges on quarterly earnings and resolution of remaining probes.
Under SEBI clears Adani shares rise dynamics, trading volumes spiked, with Adani Power alone seeing 22 million shares exchanged by midday. This uptick contrasts with the 2023 rout, when Adani Group stocks shed nearly 70 per cent in value post-Hindenburg, underscoring the conglomerate’s resilience through deleveraging and project wins.
Background
The Hindenburg saga originated on Tuesday, 24 January, 2023, when the short-seller labelled Adani Group as engaging in “the largest corporate fraud in history,” citing offshore tax havens and undisclosed ties. The report triggered a $150 billion evaporation in market value, prompting India’s Supreme Court to direct SEBI to investigate. A court-appointed expert panel in 2023 found no prima facie evidence of manipulation, aligning with Thursday’s orders.
Since then, Adani Group has rebuilt, with its market cap rebounding to over ₹15 trillion by mid-2025 through debt reduction and expansions in green hydrogen and airports. However, the episode exposed vulnerabilities in South Asian corporate governance, prompting SEBI to tighten short-selling disclosures in 2024.
What’s Next for Adani Group
With two charges cleared, SEBI’s focus shifts to the remaining 22 orders, potentially concluding by year-end. Adani Group executives have pledged continued cooperation, while investors eye upcoming results on 5 November, 2025, for insights into ports and power segments. This partial closure in the Adani Group market regulator 2025 timeline could pave the way for accelerated capital raises, but any adverse findings in pending probes might renew volatility. As Gautam Adani affirmed, the group’s “commitment to India’s institutions… remains unwavering,” signalling a forward path anchored in regulatory compliance and nation-building.
Published in SouthAsianDesk, September 19th, 2025
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