SEBI has issued a show-cause notice to Adani Power, demanding a response. Adani’s company faces allegations of improperly categorizing some investors as public shareholders. Adani Power, a key player in the electricity and power sector, acknowledged receiving the notice and provided an update regarding it.
Adani Power: Just before Diwali, industrialist Gautam Adani faced a major setback as his power company came under the scrutiny of the Securities and Exchange Board of India (SEBI). SEBI has issued a show-cause notice to Adani Power, marking the second notice in the current fiscal quarter. Following this news, Adani Power’s shares saw a steep sell-off, dropping over 2%, bringing the share price down to ₹588.80.
Adani Power in Trouble
SEBI’s notice to Adani Power demands an explanation regarding allegations of misclassifying certain investors as public shareholders. Adani Power, a major player in the electricity and power sector, acknowledged receiving the notice and mentioned its commitment to providing necessary information and clarifications to regulatory and government authorities as required.
Adani Power and Adani Solutions, both part of the Adani Energy Group, manage various electricity projects. The company clarified that SEBI’s notice pertains to the incorrect categorization of certain parties’ shareholdings as public shareholding.
This scrutiny follows allegations by U.S.-based short seller Hindenburg against Adani’s companies, which have been on SEBI’s radar ever since. SEBI issued the notice amid ongoing political backlash, with opposition parties pressing the matter both in Parliament and on the streets. The notice also arrives at a time when SEBI Chief Madhabi Puri Buch is facing allegations from Hindenburg, accusing her of not adequately investigating the Adani case and allegedly misusing her position, a claim Congress continues to raise against her.
