The Securities and Exchange Board of India (SEBI) has identified 13 transactions for related party norms and fraudulent trade violations in Adani Group companies. The transactions were between Adani Group companies and three offshore entities, which are said to have links to Adani Group founder Gautam Adani’s elder brother, Vinod Adani.
The transactions are alleged to have violated SEBI’s related party transaction norms, which require companies to disclose all related party transactions to the stock exchanges. The transactions are also alleged to have violated SEBI’s fraudulent trade norms, which prohibit companies from using fraudulent or manipulative means to trade in securities.
SEBI has asked Adani Group companies to provide additional information on the transactions and to explain why they believe the transactions did not violate SEBI’s norms. SEBI has also asked Adani Group companies to take steps to prevent such violations from happening in the future.
The Adani Group has denied any wrongdoing and has said that it will cooperate with SEBI’s investigation. The group has also said that it is committed to following all applicable laws and regulations.
The SEBI investigation is ongoing and it is not yet clear what the outcome will be. However, the investigation is a significant development and it is likely to have a major impact on the Adani Group.