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SEBI finds Adicorp routed ₹1,282 crore between Adani Group companies
This is a final order issued by the Securities and Exchange Board of India (SEBI) regarding allegations that Adani Group companies used Adicorp Enterprises Private Limited to route funds between listed entities, potentially concealing…
This is a final order issued by the Securities and Exchange Board of India (SEBI) regarding allegations that Adani Group companies used Adicorp Enterprises Private Limited to route funds between listed entities, potentially concealing related-party transactions. It matters to citizens as it addresses regulatory compliance, financial disclosures, and potential fraud in the securities market involving major listed companies.
Who it concerns: The order concerns Adani Ports & Special Economic Zone Limited (APSEZ), Adani Power Limited (APL), Adicorp Enterprises Pvt. Ltd., Mr. Gautam Shantilal Adani, and Mr. Rajesh Shantilal Adani, as well as the general public and investors affected by the alleged misrepresentations in financial statements.
What the document says
- SEBI investigated whether listed Adani Group companies circumvented the SEBI Act, LODR Regulations, and PFUTP Regulations between FY 2012-13 and 2020-21.
- SEBI found that APSEZ transferred ₹1,282 crore to Adicorp, which was immediately transferred to APL, and subsequently repaid with interest.
- SEBI noted that Adicorp earned a 20 basis point interest spread on these transactions.
- The order addresses whether these loan transactions constituted related-party transactions under Listing Agreements or LODR Regulations.
- The order examines whether there was a scheme or artifice to conceal related-party transactions.
Also in the document
- Hindenburg Research alleged in January 2023 that Adicorp was used as a conduit to route funds from Adani Group companies to Adani Power.
- Adani Group initially clarified to stock exchanges and SEBI that Adicorp was not a related party and transactions were compliant with law.
- Bank statements showed funds moved from APSEZ to Adicorp to APL on the same day or the next day.
- APSEZ received back ₹1,376.15 crore against ₹1,282 crore lent, earning ₹94.15 crore in interest.
- Adicorp received back ₹1,453.87 crore against ₹1,282 crore lent, earning ₹4.46 crore in interest.
How this was written
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The original document
Government documents surfaced by the press
Government document · Ref. 40d284c90c1b4514
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