SEBI dismisses Hindenburg report against Adani Group as baseless
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Mumbai: The Securities and Exchange Board of India (SEBI), the regulatory authority of the stock market, has dismissed the U.S.-based short-seller Hindenburg’s report as baseless months after it accused the Adani Group of fraud in the stock market.
SEBI made it clear that no irregularities have been found against the Adani Group and that no penalty has been imposed.
SEBI in its two separate orders stated that allegations of insider trading, the illegal practice of gaining profits in the stock markets by using internal confidential company information, and allegations of market manipulation, and violations of securities laws were unfounded.
Hindenburg Research’s report that caused a political storm in the country was released in January 2023.
The Hindenburg report alleged that Adicorp Enterprises Pvt. Ltd., Milestone Tradelinks Pvt. Ltd., and Revar Infrastructure Pvt. Ltd served as a conduit for routing funds within the Adani Group thus funding companies such as Adani Power Ltd and Adani Enterprises Ltd.
However, SEBI concluded that it did not come under the norms of the transactions between related parties, hence were not illegal.
The Adani Group had repeatedly denied Hindenburg’s report, which triggered a sharp fall in Adani Group shares in January last year.
Adani Group was accused of having created shell companies in foreign countries to route investments back into its own listed firms, thus inflating share prices, before pledging them to secure loans.
The turmoil led to an erosion of nearly ₹12.5 lakh crore in market value in Adani Group stocks.
The US short-seller Hindenburg employed the strategy of releasing shocking reports to cause fall in stock prices and thus gaining profit from prior short-selling. Founded in 2017, the firm announced in June 2025 that it was shutting down.
Hindenburg alleged that SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch had involvement in secret overseas investments linked to Adani Group.
Gautam Adani himself openly admitted that Hindenburg’s was not an ordinary attack, which was a blow that directly impacted the group’s financial stability.
The report came out just before the closure of their Follow-On Public Offer. Gautam Adani alleged that certain media outlets with vested-interest amplified the report’s reach.