SEBI's first reaction on Gautam Adani bribery case, begins inquiry into...

India’s market regulator SEBI is conducting a preliminary inquiry to determine if the Adani Group violated disclosure norms, according to reports. This comes after the US Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) indicted the group’s chairman, Gautam Adani, and seven associated entities for bribery, wire fraud, and securities violations.

According to a Times of India report, SEBI has asked stock exchanges to seek clarifications from Adani companies regarding potential breaches of listing obligations. The investigation focuses on allegations that the Adani Group misled investors and withheld information about US investigations. While SEBI’s inquiry is in the early stages, it could escalate into a formal probe.

The DoJ stated that in March 2023, Sagar Adani, another key figure in the group, was investigated by the FBI. Despite knowing about these investigations, the Adani Group reportedly denied any awareness of them and made misleading statements to investors and stock exchanges.

For instance, on March 19, 2024, Adani Green Energy informed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) that it had not received any DoJ notices. The indictment alleges that Gautam and Sagar Adani pressured staff to issue false statements.

On Thursday, all Adani Group stocks plummeted following the indictments, wiping out Rs 2.2 lakh crore in investor wealth. The selloff eased on Friday, with market cap losses limited to Rs 10,300 crore.

While the Adani Group has denied the allegations, it claimed no queries had been received from SEBI. The regulator has not commented on the matter publicly, in line with its policy on ongoing investigations.