SEBI Closes Vinod Adani Investment Case Citing Lack of Evidence

The Securities and Exchange Board of India (SEBI) has closed proceedings concerning allegations that Vinod Adani exercised direct or indirect control over investment decisions made by certain foreign portfolio investors in Adani Group companies. In its final order, the regulator said there was insufficient evidence to establish such control.

SEBI examined investments by Emerging India Focus Funds and EM Resurgent Fund in Adani Enterprises, Adani Power, Adani Ports and Adani Energy Solutions. The regulator said business or financial relationships alone were not sufficient to establish de facto control and that clear evidence of influence over policy or investment decisions would be required. SEBI also rejected the claim that control was exercised through individuals including Nasser Ali Shaban Ahli and Chang Chung-Ling. Separate penalties were imposed on the two individuals for failures relating to information provided to the regulator, while other entities had settled proceedings. The findings also resulted in the related allegations concerning minimum public shareholding and PFUTP regulations not being sustained.