SEBI puts seven Adani Group companies on
notice for regulatory violations
India's markets regulator has sent notices of
regulatory violations to seven companies of the Adani conglomerate, including
its flagship Adani Enterprises, the group said in stock exchange filings.
The regulator began probing the Adani group, led by
billionaire Gautam Adani, after Hindenburg Research in January 2023 alleged
improper use of tax havens and stock manipulation by the group, accusations the
group has denied.
Adani Enterprises said on Thursday that the
Securities and Exchange Board of India (SEBI) had sent it two notices in the
January-March quarter of this year, saying it had not complied with provisions
for listed companies and had violated disclosure rules on some related-party
transactions.
The company did not give details of the alleged
violations or the parties involved.
However, it said that management believed the
notices had no "material consequential effect" for relevant financial
statements and there was "no material non-compliance of applicable laws
and regulations".
Adani Green Energy, Adani Power, Adani Total Gas,
Adani Energy Solutions, Adani Wilmar, and Adani Ports have also received
notices from SEBI in the first quarter, the companies said in separate filings
to the exchanges this week.
Typically such violations attract monetary penalties
or management can be barred from capital markets for a certain period. Such
actions are based on the seriousness of the allegations. Reuters could not
ascertain the seriousness of the allegations.
A spokesperson for the Adani group did not
immediately respond to requests for comment.
Shares of Adani Green and Adani Energy were up 0.9
per cent and 0.7 per cent, respectively on Friday, while the other companies'
shares were down between 0.1 per cent and 2 per cent.
Adani Power said the notices it had received stated
that some third-party transactions had not been reported in the relevant years'
financial statements or annual reports, and the requisite review and approvals
of such transactions had not been sought.
Adani Wilmar, Adani Total and Adani Green said their
SEBI notices concerned the validity of a so-called peer review certificate of
their auditor for a previous financial year.
Auditors for Adani Ports, Adani Power and Adani
Enterprises have also issued a so-called qualified opinion because of the SEBI
investigations.
Pending the outcome of the investigations, the
auditors said they were unable to comment on the possible consequential effect
on any periods presented in the financial statements and whether the company
had complied with applicable laws and regulations.
www.business-standard.com
dt. 04-05-2024