India’s markets regulator issues notices to seven Adani companies for irregularities | Wilnesh News

India’s market regulator has issued violation notices to seven Adani Group companies, including its flagship Adani Enterprises, the group said in a stock exchange filing.

Regulators began investigating the Adani Group, led by billionaire Gautam Adani, after Hindenburg Research in January 2023 accused the group of improper use of tax havens and stock manipulation. , but the group denied the accusations.

Adani Enterprises said on Thursday that the Securities and Exchange Board of India (SEBI) issued two notices to it in the January-March quarter this year, saying it failed to comply with listed company regulations and violated some relevant information disclosure rules. .

The company did not disclose details of the alleged breach or the parties involved.

However, the company said management believes the notices will have “no material consequential impact” on the relevant financial statements and that “there are no material violations of applicable laws and regulations.”

Adani Green Energy, Adani Power, Adani Total Gas, Adani Energy Solutions, Adani Wilmar and Adani Ports also received notifications from SEBI in the first quarter, the companies filed with the exchange this week represented in a separate file.

Typically, such violations are punishable by fines, or management may be banned from the capital markets for a period of time. Such action is based on the seriousness of the allegation. Reuters could not determine the seriousness of the accusations.

A spokesman for Adani Group did not immediately respond to a request for comment.

Shares of Adani Green and Adani Energy rose 0.9% and 0.7% respectively on Friday, while shares of other companies fell between 0.1% and 2%.

Adani Power said it had received notices that some third-party transactions had not been reported in the financial statements or annual reports for the relevant years and that the required reviews and approvals for such transactions had not been sought.

Adani Wilmar, Adani Total and Adani Green said their SEBI notice related to the validity of the so-called peer review certificate of their auditors for the previous financial year.

Auditors of Adani Ports, Adani Power and Adani Enterprises also issued what they called qualified opinions in light of the SEBI probe.

Pending the outcome of the investigation, the auditors said they could not comment on the possible consequences for any period presented in the financial statements and whether the company complied with applicable laws and regulations.