The Securities and Exchange Board of India (SEBI) will probe allegations of disclosure violation that has come to light as part of an indictment filed by the Department of Justice (DOJ) and the US Attorney for the Eastern District of New York, according to sources. “SEBI will take action if there is any disclosure violation. Other accusations of bribery do not come under the regulator’s purview,” said sources close to the development.
Also ReadAdani fund-raising plans under cloud amid US indictment
The indictment alleged that Federal Bureau of Investigation (FBI) agents had raided the premises of Sagar Adani, ED of Adani Green, and Gautam Adani’s nephew, in March 17, 2023. This was related to the anti-bribery probe undertaken by the US authorities against the company and key managerial personnel.
“At the same time, FBI special agents provided Sagar with a copy of the search warrant and served him with a grand jury subpoena. The search warrant identified offences, individuals and entities under investigation,” the indictment said. However, Adani Green did not make any disclosures about the raid to the stock exchanges, violating SEBI’s Listing Obligations and Disclosure Requirements (LODR) as it is a material event. In case of non-compliance, SEBI can take severe action and levy a monetary penalty. Given the size and impact of the Adani group, securities lawyers estimate a hefty monetary penalty on the company and KMPs, if implicated by SEBI.
A year later, in response to a media report about a US probe into the Adani group over potential bribery charges, Adani Enterprises had denied receiving any notice from the US DOJ.
Around the same time, Adani Green Energy had disclosed a similar denial but said the company was aware of an investigation by the US DOJ into potential anti-corruption laws by a third party, which it claimed to have no linkage to.
The US DOJ has also accused the company of not disclosing developments pertaining to the anti-bribery probe to the US-based bondholders while selling them bonds.
Also ReadAdani’s dollar bonds see biggest fall since Hindenburg
In another complaint by the US SEC against Sagar and Gautam Adani, it said that Adani Green Energy had mentioned the possibility of its employees taking actions that could expose the company to liability under anti-bribery laws,
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