Indian regulator clears Adani of some allegations by short-seller

Shares of Adani Enterprises rallied after India's securities market regulator cleared the group's billionaire founder Gautam Adani of some allegations of impropriety raised by US short-seller Hindenburg Research in 2023.

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The flagship company's stock climbed as much as 5.2 per cent on Sept 19 after the Securities and Exchange Board of India (Sebi) said the evening before that there was no evidence of the Indian conglomerate using so-called related party transactions to route funds into its listed units in two orders on its website. Adani Group has repeatedly denied the accusations first made by Hindenburg, which has since disbanded.

Shares of all 10 firms controlled by the group gained, led by Adani Total Gas, which jumped more than 13 per cent.

While the regulator's orders do not clear the ports-to-power conglomerate of other allegations raised by the short-seller, they still mark a reprieve for Adani's empire and validate its stance of not being in violation of local laws.