Adani Enterprises received 2 show cause notices from Sebi in Q4 on Hindenburg probelive bse livense live Volume Todays L/H More ×Adani Enterprises Ltd on Thursday said that the company received two show cause notices from markets regulator Securities and Exchange Board of India (Sebi) as part of its ongoing investigation in Hindenburg's report against the conglomerate.
In a major relief for the Adani group, the Supreme Court in January held that there was no ground to transfer the Adani-Hindenburg case investigation from Sebi to a Special Investigation Team.
Further, the top court directed Sebi to complete its two pending investigations, preferably within three months, and take its overall investigation to its logical conclusion in accordance with the law.
At that time, Sebi completed 22 out of 24 investigations into the Adani group.
In January 2023, US-based short seller Hindenburg Research alleged several corporate governance and debt issues at the conglomerate, resulting in the group’s stocks plunging and the cancellation of the Rs 20,000 crore follow-on public offering of Adani Enterprises.
Adani Enterprises received 2 show cause notices from Sebi in Q4 on Hindenburg probe
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Adani Enterprises Ltd on Thursday said that the company received two show cause notices from markets regulator Securities and Exchange Board of India (Sebi) as part of its ongoing investigation in Hindenburg's report against the conglomerate.
In its Q4 earnings release, Adani Enterprises said that during the quarter ended March 31, 2024, the company received notices from Sebi alleging non-compliance with provisions of the Listing Agreement and LODR (Listing Obligations and Disclosure Requirements) Regulations pertaining to related-party transactions with respect of certain transactions with third parties as well as the validity of peer review certificates of statutory auditors with respect to earlier years.
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Also Read: Adani Enterprises Q4 net profit falls 38% to Rs 451 cr due to exceptional loss, higher operating costs
However, it added that the management believes there is no material consequential effect of the show cause notices to relevant financial statements and no material non-compliance with applicable laws and regulations.
“Earlier in April 2023, the Parent Company had undertaken a review of transactions referred to in the short seller’s report through an independent assessment by a law firm, which confirmed that (a) none of the alleged related parties mentioned in the SSR were related parties to the Parent Company or its subsidiaries, under applicable frameworks; and (b) the Parent Company is in compliance with the requirements of applicable laws and regulations,” the company said.
In a major relief for the Adani group, the Supreme Court in January held that there was no ground to transfer the Adani-Hindenburg case investigation from Sebi to a Special Investigation Team.
Further, the top court directed Sebi to complete its two pending investigations, preferably within three months, and take its overall investigation to its logical conclusion in accordance with the law. At that time, Sebi completed 22 out of 24 investigations into the Adani group.
Also Read: Review filed against SC’s judgment on Adani-Hindenburg issue
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Based on above independent assessment, the SC order and the fact that there are no pending regulatory or adjudicatory proceedings as of date, except as mentioned above, the management concludes that there is no material non-compliance of applicable laws and regulations and accordingly, these financial statements do not carry any adjustments in this regard,” the earnings release said.
In January 2023, US-based short seller Hindenburg Research alleged several corporate governance and debt issues at the conglomerate, resulting in the group’s stocks plunging and the cancellation of the Rs 20,000 crore follow-on public offering of Adani Enterprises.
