SEBI issues show-cause notices to six Adani Group companies; check list
Upstox
2 min read • Updated: May 3, 2024, 2:11 PM
Summary
This development comes after SEBI's probe into allegations against the Adani Group made by US-based activist-short seller. In its report to the Supreme Court in August, the market regulator had said it identified 13 specific related party transactions.
The Securities and Exchange Board of India (SEBI) has issued show cause notices to six firms belonging to the Adani Group, according to regulatory filing by these companies. The notices were issued for alleged non-compliance with listing regulations and breaches in related party transactions, reports said on Friday.
Six Adani Group companies receive show cause notices from SEBI; check list
- Adani Enterprises
- Adani Ports and Special Economic Zone
- Adani Energy Solutions
- Adani Power
- Adani Total Gas
- Adani Wilmar
According to a Business Standard report, the companies' legal counsels have indicated that there will be minimal impact on their businesses due to the regulatory notices. However, auditors, except for Adani Total Gas and Adani Wilmar, are cautious and have given qualified opinions.
"... on account of pending adjudications/ outcome of the investigations by the Securities and Exchange Board of India and based on our review of related documents, we are unable to comment on the possible adjustments and /or disclosures, if any, that may be required to be made in the accompanying Statement in respect of this matter. We will continue to evaluate the impact of this matter on our opinion based on any changes in circumstances or additional information that may become available," auditors of Adani Enterprises were quoted as saying by the newspaper.
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Adani Ports and Special Economic Zone said, "The allegations are that the company has not obtained the requisite approvals, and have not made the required disclosure in the financial statements/ annual report. Not recalling security deposits against terminated contracts leading to not using the funds for company's core business purposes and thus not complying with the company's code of conduct".
This development comes after SEBI's probe into allegations against the Adani Group made by US-based Hindenburg Research.
In its report to the Supreme Court in August, the market regulator had said it identified 13 specific related party transactions.