SEBI to conduct investigation against Adani

MUMBAI: India's market regulator, the Securities and Exchange Board of India (SEBI), is investigating allegations against Gautam Adani in the backdrop of the arrest warrant issued by a US court against the billionaire.

The U.S. Securities and Exchange Commission (SEC) has alleged in its indictment that the Adani Group had paid Rs 2,092 crore in bribes to Indian politicians and officials to secure contracts for selling solar energy generated by Adani Green Energy company at higher prices. It is also alleged that the Adani Group then raised investments in the United States by concealing this. In connection with this, a New York court has issued an arrest warrant against Gautam Adani and Sagar Adani, who is his nephew and the Executive Director of the Green Energy company. Charges have been filed against seven top executives of the Adani Group, including the two.

SEBI will be examining whether the Adani Green Energy company had failed to inform investors about the details of the inquiry being conducted by the U.S. Department of Justice regarding bribery allegations. SEBI has directed the Indian stock exchanges, BSE and NSE, to provide information in this regard within two weeks.

Did not disclose investigation details
In March last year, FBI officials had arrived at Sagar Adani's residence in the US, served a search notice and seized some electronic devices. The US anti-corruption law mandates that such information be disclosed to investors. It is alleged that the Adani Group has violated this requirement.