Sebi settles disclosure case against Adani firms for Rs 1.5 cr; Congress says 'amazing courage'
Adani Enterprises pays Rs 76 lakh, while four other group firms collectively pay Rs 74 lakh over alleged related-party disclosure lapses and audit compliance issues
Stock market regulator Sebi on Tuesday (September 22) settled adjudication proceedings against five Adani group companies over alleged violations related to the disclosure of related-party transactions, with the firms collectively paying Rs 1.50 crore as the settlement amount.
The proceedings stemmed from Sebi's examination into allegations and corporate governance issues highlighted in the Hindenburg report, including possible violations of the listing regulations and erstwhile listing agreement.
'Amazing courage': Congress's swipe at SEBI
Reacting to the development, the Congress took a swipe at SEBI, saying, “amazing courage” the market regulator has demonstrated.
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Congress general secretary (communications) Jairam Ramesh said, “What amazing courage SEBI has demonstrated.”
He said the five companies in the “Modani” conglomerate paid a “grand amount” of Rs 1.5 crore as settlement amount to SEBI over violations involving the disclosure of related-party transactions.
Which are the 5 companies
The five companies are Adani Enterprises Ltd, Adani Total Gas Ltd, AWL Agri Business Ltd (formerly Adani Wilmar Ltd), Adani Green Energy Ltd and Adani Energy Solutions Ltd (formerly Adani Transmission Ltd), according to Sebi's settlement order.
Under the settlement terms, Adani Enterprises paid Rs 76.05 lakh, while Adani Green Energy paid Rs 45.50 lakh. Adani Total Gas, AWL Agri Business and Adani Energy Solutions paid Rs 9.75 lakh each.
According to the settlement order, the proceedings related to alleged non-disclosure of certain related-party transactions and instances where audit or limited review reports were signed by audit firms without holding a valid peer review certificate.