In his first reaction after the Securities and Exchange Board of India (SEBI) clean chit in connection with the 2023 Hindenburg report allegations, Adani Group Chairman Gautam Adani on Monday said that the positive outcome of the SEBI investigation belongs to each and every one who stood by the conglomerate throughout this period.
“A cloud that had hung over us for more than two years has been lifted. SEBI’s comprehensive investigation has concluded by rejecting all allegations contained in the Hindenburg report from January 2023. It was your unwavering faith, your strength, and your belief in the company that sustained us throughout this period. This outcome belongs not only to the Adani Group but also individually to each of you who stood by us and for that support, I am deeply thankful,” he said in a video statement.
Adani described the Hindenburg attack as more than just a market event, claiming it was a “targeted multidimensional assault” that tested the group’s reputation, resilience and India’s own confidence in its entrepreneurs.
“Though Hindenburg itself, under mysterious circumstances, closed its doors last year, doubt had continued to linger. But you, my people, stood firm with me…You proved that execution under pressure is the truest test of character, and that the Adani character is simply unbreakable,” he stated.
The billionaire entrepreneur said that the crisis was an “agnipariksha” that has deepened the group’s foundations and made its resolve “unbreakable”.
“Every crisis teaches us lessons. And as a first-generation entrepreneur, I know this will certainly not be our last agnipariksha. But as we step through the flames of trial, our foundations deepen, and our resolve becomes even more unbreakable,” he said.
Adani stressed that growth always comes with its challengers, adding greater tests lie ahead for the conglomerate in the future.
“I have no doubt that greater tests lie ahead but the fire that burns in us today will temper the strength we will lean on tomorrow. And that is precisely how this Company has been built agnipariksha by agnipariksha…,” he added.
Gautam Adani’s reaction came after the SEBI investigation into the allegations made by US short seller Hindenburg, concluded that there is no violation of listing agreement or SEBI Listing Obligations and Disclosure Requirements (LODR) and the impugned transactions do not qualify as “related party transactions”.
“Reading of Listing Agreement and SEBI (LODR) Regulations reveals that transactions between a listed company with unrelated party is not covered within the definition of related party transactions as it existed during the time when impugned transactions took place, though included specifically after the 2021 amendment,” SEBI said in a statement.
The market regulator further highlighted that there is no violation of Section 12A of the SEBI Act and SEBI-Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market (PFUTP) Regulations, as alleged.