Adani Group Responds To Reports Of Probe By U.S. Regulators

Adani Group has said it isn’t aware of any subpoenas to its U.S. investors from the Securities and Exchange Commission, the country’s stock market regulator.

What Happened? The Gautam Adani-led conglomerate said in a late-night filing on Monday that it was routine for regulators to seek access to public material “in an easy and referenceable manner”.

“Adani Portfolio Companies and its businesses have acted as per the regulations and accounting standards of the jurisdictions in which they operate,” The firm added.

It was reported last week that U.S. authorities were investigating the representations made by Adani Group to its American investors, following allegations of share price manipulation by short-seller Hindenburg Research.

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The firm was rocked by a scathing attack by the US-based research firm, which in January accused the company of serious financial misconduct, though Adani Group has denied the claims.

The ports-to-cement conglomerate said in the filing that the expert committee, appointed by the Supreme Court of India, had already filed a report in which it said that the group had pared down debt, infused fresh funds, which had led to an “increase in investor confidence”. The company said it was still being investigated by the Securities and Exchange Board of India (SEBI) and asked investors to wait for the findings.

“We request to avoid needless speculation at this time and wait for SEBI and the Hon’ble Supreme Court to complete their work and submit their findings,” the firm said.

The firm also said that four of its portfolio companies Adani Green Energy, Adani Transmission, Adani Ports and Adani Enterprises issue bonds in the global capital market, but only Adani Ports is a corporate issuer. Adani Enterprises has one instrument issued on a corporate basis, while all of the other issues were restricted group issuances.

“Further, these bonds have been raised under the ECB guidelines of Reserve Bank of India, in the form of Non-Convertible Debentures and are subject to stringent extant ECB guidelines and regulation of the Reserve Bank of India,” the company said, adding that the offering circulars for these bonds contained full and complete disclosures.

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