The Securities and Exchange Board of India (SEBI) has taken action against Adani Enterprises and other subsidiaries of the Adani group after receiving notices of regulatory violations. Adani Enterprises acknowledged that SEBI sent them two notices in the March quarter highlighting non-compliance with provisions for listed companies and violations of disclosure rules related to certain transactions with related parties. Despite not divulging specific details of the alleged violations or the entities involved, the company conveyed that they believed the notices would not have a significant impact on relevant financial statements and stated there was no substantial non-compliance with relevant laws and regulations.
Following the allegations made by Hindenburg Research regarding the improper use of tax havens and stock manipulation in January 2023, the Adani group, led by billionaire Gautam Adani, has come under scrutiny by regulatory authorities. Adani Power, Adani Total Gas, Adani Energy Solutions, Adani Wilmar, and Adani Ports, besides Adani Enterprises, have also received notices from SEBI during the quarter. The investigations have caused a minor decline in the share prices of these companies, with Adani Enterprises reporting a drop of between 0.1% and 1.6% on Friday.
In response to the notices received, Adani Power mentioned that the third-party transactions unreported in the financial statements or annual reports triggered the notification. Adani Wilmar and Adani Total Gas revealed that their SEBI notice pertained to the authenticity of a peer review certificate from their auditor for a prior financial year. Additionally, auditors for Adani Ports, Adani Power, and Adani Enterprises have issued a qualified opinion due to the ongoing SEBI investigations. These auditors expressed their inability to determine the consequential impact on presented financial statements until the investigation's conclusion, casting uncertainty on the companies' compliance with laws and regulations.