Adani Group Pursues SEBI Settlement Over Shareholding Violations to Prevent Regulatory Action

The Adani Group, led by billionaire Gautam Adani, has reportedly sought a settlement with the Securities and Exchange Board of India (SEBI) regarding allegations of violating public shareholding regulations. According to a report by the Economic Times (ET), SEBI issued notices to several Adani entities, including Adani Enterprises, Adani Power, Adani Ports, and Adani Energy, accusing them of misclassifying certain shareholdings.

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The allegations date back to 2020 and pertain to non-compliance with minimum public shareholding requirements. SEBI is seeking to recover approximately ₹2,500 crore from the group. In response, Adani Enterprises, along with its director Vinay Prakash and Ambuja Cements director Ameet Desai, has proposed settlement amounts of ₹3 lakh each.

The investigation involves foreign portfolio investors (FPIs) such as Emerging India Focus Funds (EIFF) and EM Resurgent Fund (EMR), as well as a foreign investor, Opal Investments, whose holdings were reportedly linked to Vinod Adani, Gautam Adani's elder half-brother. SEBI alleges these entities were used to acquire shares in Adani companies to create the appearance of compliance with public shareholding norms, despite their ties to Adani Group promoters.

Documents reviewed by ET reveal that EIFF, based in Mauritius, has offered a settlement amount of ₹28 lakh. In total, SEBI issued show-cause notices to about 30 entities, including Gautam Adani, his brothers Vinod, Rajesh, and Vasant, as well as other family members. The Adani Group has contested the allegations, stating that the settlement proposal is a precautionary response to SEBI’s notice.

The investigation also uncovered consistent voting alignment between FPIs and Adani promoters on matters such as approving related-party transactions and reappointing directors. SEBI contends these holdings should have been classified as promoter group shareholdings, rather than public.

Meanwhile, the Adani Group has also faced separate allegations from U.S. authorities, who accused the conglomerate of paying $265 million in bribes for Indian power contracts and misleading U.S. investors during fundraising efforts. The group has strongly denied these claims, labeling them "baseless."

SEBI has yet to decide on the settlement applications, and the filing is seen as a procedural step to preserve the option for resolution.