Mumbai: The Securities and Exchange Board of India (SEBI) has found that allegations of violation of minimum public shareholding (MPS) norms and fraudulent trade practices were not established against Vinod Adani and 11 others, bringing an end to a regulatory case that had remained under investigation for more than five years.
The order, passed by SEBI Whole Time Member Kamlesh Chandra Varshney, disposed of the show-cause notices issued in the matter.
The investigation was initiated in October 2020 following complaints received by SEBI in June and July that year. The complaints alleged violations of MPS requirements by four listed Adani Group companies — Adani Enterprises, Adani Power, Adani Ports and SEZ, and Adani Transmission, now known as Adani Energy Solutions.
SEBI subsequently issued a show-cause notice in September 2024, followed by a supplementary notice in March 2025.
At the centre of the case was the allegation that Vinod Adani, brother of Gautam Adani and Rajesh Adani, was part of the promoter group and exercised control over investments made through two foreign portfolio investors (FPIs) in the four companies.
The allegations were linked to the requirement that listed companies maintain at least 25 per cent public shareholding.
After examining the matter, however, SEBI found no evidence establishing that Vinod Adani exercised control over the underlying investors or the FPIs.
“Since the foundational allegation of effective control over the FPIs as well as Opal has not been established, the consequential allegation relating to violation of the minimum public shareholding requirements has not been upheld,” the order said.
As the MPS allegation was not established, the related allegation under the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations also did not survive.
Separately, the listed Adani Group entities and their individual directors and officers had opted to settle the proceedings. SEBI accepted the settlement in a separate order, with the entities and individuals collectively paying Rs 1.48 crore on August 26.
A settlement under SEBI’s regulatory framework resolves proceedings without an admission of liability and is an alternative to adjudication.
Vinod Adani and the other noticees in the present proceedings, however, chose adjudication. With the regulator finding that the foundational allegations were not established, the MPS and PFUTP charges against them have now been disposed of.
(IANS)
