The Adani Group’s regulatory settlement pleas are on hold as SEBI’s newly appointed chief initiates a thorough review of internal procedures. This has delayed over 300 such applications, including those involving Adani’s alleged shareholder misclassifications and offshore fund links.
The Adani Group, one of India’s largest conglomerates with business interests spanning energy, ports, infrastructure, and logistics, is facing delays in resolving regulatory charges, as the Securities and Exchange Board of India (SEBI) undergoes a process overhaul under its new leadership.
SEBI, India’s capital market regulator, is currently reviewing internal settlement rules following concerns about inconsistency in penalties and unclear processes. This review, which began after a new SEBI chairperson took over in March 2025, has temporarily stalled over 300 settlement applications, including those submitted by the Adani Group and associated offshore investors.
These applications are tied to allegations ranging from misclassification of shareholders to breaches in disclosure norms. The Adani Group came under intense scrutiny following a 2023 report by US-based shortseller Hindenburg Research, which accused the group of manipulating stocks and misusing offshore tax havens. The resulting market fallout led to a massive $150 billion dip in Adani stock values, although the group has since recouped significant market capitalization.
SEBI has alleged that key Adani entities such as Adani Enterprises, Adani Ports, Adani Power, and Adani Energy wrongly categorized certain shareholders as “public” despite connections to insiders, including Mauritius-based funds linked to Vinod Adani, the brother of Chairman Gautam Adani. Under Indian law, a minimum of 25% of a listed company must be held by the public.
While the Adani entities offered to pay monetary fines to settle these allegations, they reportedly did not propose reclassifying the shareholdings. Sources familiar with the matter say that settlement may only proceed if these holdings are re-categorized as non-public.
Meanwhile, U.S. authorities have also indicted Gautam Adani and senior officials at Adani Green for alleged bribery in securing Indian power contracts and misleading U.S. investors. An internal review by the Adani Group claimed no violations occurred.
In total, 30 Adani-linked entities have sought settlement, but their cases are among the highest profile of the over 300 being paused until SEBI finalizes new settlement norms, which could take up to three months.
The Adani Group and SEBI have not issued official comments regarding the ongoing developments.
