Not aware of any subpoena from US regulators to investors: Adani Group

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Gautam Adani’s Adani Group said it is not aware of any subpoena from US regulators to investors, the news agency said. Reuters reported on Friday.

This comes next bloomberg It reported that US regulators were looking into the protests the group made to its US investors after the Hindenburg Report accused it of stock-price manipulation.

According to the report, the US Attorney’s Office in Brooklyn, New York, has sent inquiries in recent months to institutional investors with significant holdings in the conglomerate. The requests for information focused on what the Adani Group told these investors.

The Securities and Exchange Commission (SEC) also has a similar investigation underway, which is bloomberg The report added.

Notably, requests for information from US prosecutors do not necessarily mean that a criminal or civil lawsuit will be filed because law enforcement agencies often open investigations that do not lead to action.

After this report, the shares of Adani Group took a heavy hit on the Indian stock exchanges. On Friday, the group’s shares fell by six percent in daily trading on the Bahrain Stock Exchange.

Also in India, market regulator the Securities Board of India (SEBI) is investigating allegations made by a foreign short seller on January 25, 2023 and also into market activity before and after that date. A ruling from the Securities and Exchange Commission is expected in August.

However, a panel of experts appointed by the Supreme Court said in a report last month that they found no regulatory failure or wrongdoing behind the wild swings in Adani’s shares.

“We fully comply with all laws, rules and regulations, and we are confident that the truth will prevail. We fully cooperate with SEBI and will continue to provide all our support and cooperation,” Adani Group said in a media statement on April 29.

The Adani Group’s troubles began when, on January 25, the Hindenburg issued a report accusing the group of using a network of offshore companies in tax havens to embellish share prices and financial results. The report also alleged that the group had violated disclosure and shareholding laws.