SEBI rejects charge of minimum public shareholding violation by Adani Group companies

The Securities and Exchange Board of India (SEBI) has ruled that allegations of minimum public shareholding (MPS) violations against four companies within the Adani Group were not proven. This decision concludes an inquiry that began in 2020, following complaints alleging non-compliance with MPS requirements by specific Adani Group listed companies.

SEBI issued a show cause notice (SCN) in response to allegations that shares held by two foreign portfolio investors in Adani Enterprises, Adani Power, Adani Ports, and Adani Transmission (Adani Energy Solutions) between 2013 and 2018 were effectively controlled by the group's chairman and his brother, Vinod Adani. However, SEBI found no evidence to support this claim.

The regulator also stated that there was no evidence demonstrating Vinod Adani's control over the two foreign portfolio investors' (FPIs) investment decisions.

Furthermore, SEBI rejected allegations that Vinod Adani exerted control over the FPIs through intermediary businessman Nasser Ali Shaban Ahli and Chang Chung Ling. The regulator emphasized that merely having a business or financial relationship with Ahli and Ling does not equate to control over their decisions. Consequently, SEBI dropped allegations of fraudulent and unfair trade practices associated with the MPS violations.