Adani Group stocks soar as Sebi clears Gautam Adani of Hindenburg charges

Shares of nine Adani Group companies rallied between 0.28% and 9.18% on Thursday after the Securities and Exchange Board of India (Sebi) cleared the conglomerate and its chairman Gautam Adani of allegations made by US-based Hindenburg Research.

Adani Total Gas led the surge with a jump of 9.18%, followed by Adani Power at 6.40% and NDTV at 4.98%. Adani Enterprises also posted strong gains of 4.04%, while Adani Energy Solutions advanced 3.11% and Adani Green Energy added 2.63%. Adani Ports and Special Economic Zone rose 1.67%, whereas ACC and Ambuja Cements logged relatively modest increases of 0.32% and 0.28%, respectively.

The rally came after Sebi, in two separate orders on Thursday, concluded that the Adani Group had not violated related party transaction norms. The regulator observed that certain transactions flagged by Hindenburg were not categorized as related party dealings under rules that were in place at the time. The definition of such transactions was broadened only after amendments made in 2021.

Hindenburg Research?s scathing report in early 2023 had wiped out billions in market value from the Adani Group and dented investor confidence. Adani and his companies had consistently denied all allegations of accounting irregularities and stock manipulation. Sebi?s clean chit is now being viewed as a major relief for the conglomerate and its shareholders, restoring a degree of clarity and reassurance in the market.

Meanwhile, Hindenburg Research, led by Nate Anderson and known globally for its disruptive short-selling campaigns, wind down operations in January 2025.

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