Adani Group: The SEBI Clean-Chit & Market Reaction
What Happened
On September 18, 2025, India’s markets regulator SEBI issued two detailed orders in the long-running case brought by Hindenburg Research. The US short-seller’s 2023 report had accused Adani Group of related-party transactions, stock manipulation, and use of tax havens.
SEBI has now dismissed key parts of those allegations, finding no breach of disclosure norms under the rules that were in effect at the time. This relief triggered a strong rally across Adani stocks, with gains ranging from 1% to 13%. Adani Power surged nearly 9%, while Adani Total Gas led the rally in group companies.
Despite this rally in Adani firms, broader indices such as Nifty and Sensex traded flat or slightly lower, signalling profit-taking in other sectors.
Key Details
- SEBI’s finding: flagged transactions did not qualify as “related-party transactions” under earlier rules.
- Gautam Adani, Rajesh Adani, and related Adani companies were cleared of the Hindenburg allegations.
- Some investigations are still ongoing, meaning the story is not completely over.
- Analysts have turned more bullish, with global brokerages revising outlooks upward.
Why It Matters
Investor Confidence & Overhang Removal
The Hindenburg report had created deep uncertainty, dragging down Adani valuations and raising questions for foreign investors. SEBI’s decision helps:
- Restoring confidence: Removes a major regulatory overhang.
- Valuation recovery: Stocks may trade closer to fundamentals.
- New capital flow: Global funds could return to Adani stocks.
- Sentiment boost: Market perception shifts in Adani’s favour.
Risks to Watch
- Other probes are still active and could impact sentiment.
- Regulatory norms may evolve, tightening definitions of related-party transactions.
- Valuations might overshoot fundamentals if earnings don’t keep pace.
- Broader macroeconomic factors may still weigh on performance.
Forward View
This clean-chit is a turning point for the Adani Group. It strengthens their hand in global capital markets and may allow them to focus on expansion without lingering doubts. However, sustainable performance will still depend on financial discipline, project execution, and debt management.
For investors, the SEBI order provides clarity — but the smart approach is to stay watchful, balancing optimism with caution.
