New Delhi: The Indian securities regulator on Monday eased the probe that began almost six years ago by permitting the Adani Group to settle in the matter of alleged violation of the minimum public shareholding rules with which its chairman Gautam Adani and four companies in the group are related.
The four companies and 14 of their directors, including Adani, paid a total of 14.82 million (around $154,400) rupees to Securities and Exchange Board of India (SEBI). The companies include Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone and Adani Transmission (now known as Adani Energy Solutions). The figures of the two payments reported in India’s media stand at approximately 70 million rupees each.
Listed companies, in general, are required in India to maintain a minimum public holding of 25%, thereby preventing promoters from having an unduly large interest in the company. In mid-2020, SEBI had received complaints that some of the firms run by the Adanis were failing to abide by this requirement. It had initiated an enquiry in October 2020 and had sent a show cause notice in September 2024 which was followed by a supplementary notice in March 2025. The notices also made allegations that related disclosure requirements under the listing regulations were not met.
The applicants did not admit or deny the allegations as is commonplace in SEBI settlements. The order does not include any regulatory findings of violations or any shareholder disclosure obligations for the companies to make to correct such violations. SEBI ordered the process to be kept closed.
The case has been one of 24 investigations that were initiated by SEBI in 2023 following allegations by short-seller Hindenburg Research that the Adani group had used tax havens to manipulate the price of their stocks. The group has denied those allegations. It is not immediately available for comment from Adani Group.
The settlement follows a similar one final week, when five Adani firms settled a case regarding disclosure of related party transaction with a payment of roughly 15.1 million rupees, as reported in Indian news.
According to analysts, the result will lower the immediate threat of enforcement on the companies but also leaves many questions unanswered as the group’s governance remains unaddressed in the absence of a formal finding. There are other investigations against SEBI relating to allegations of the Hindenburg hanging.
