Gautam Adani, 4 group firms settle with Sebi in minimum public shareholding violation case
NEW DELHI: Adani Group chairman Gautam Adani, four group companies and 13 others have settled proceedings with the Securities and Exchange Board of India (Sebi) over alleged non-compliance with minimum public shareholding (MPS) requirements by paying a combined Rs 1.48 crore, according to a settlement order passed by the regulator on Monday.The settlement covers Adani Enterprises Ltd, Adani Power Ltd, Adani Ports and Special Economic Zone Ltd (APSEZ), and Adani Transmission Ltd, now known as Adani Energy Solutions Ltd, along with their directors and certain other officials.Under the settlement terms, each of the four groups was required to pay Rs 37.05 lakh jointly and severally, taking the total settlement amount to Rs 1.482 crore. The applicants paid the amounts on August 26, the order said.The applicants proposed to settle the proceedings “without admitting or denying the facts and conclusions of law”, the order said.Following the settlement, Sebi whole-time member Kamlesh Chandra Varshney directed that the proceedings against the applicants be disposed of. The order said “SEBI shall not initiate any other enforcement action against Applicants for the violations as alleged in the SCN.”However, Sebi retained the right to restore or initiate proceedings if representations made during the settlement process are subsequently found to be untrue, if the applicants breach conditions or undertakings given as part of the settlement, or if there was a discrepancy in arriving at the settlement terms.The proceedings date back to complaints received by Sebi in June and July 2020 alleging, among other things, non-compliance with MPS requirements by certain listed Adani Group companies. Following a preliminary examination, Sebi initiated an investigation on October 23, 2020.After completing the investigation, Sebi issued a show-cause notice on September 27, 2024, alleging that the Adani Group companies and persons responsible for them had failed to comply with MPS requirements under the Securities Contracts (Regulation) Rules, the Listing Agreement and Sebi’s Listing Obligations and Disclosure Requirements Regulations.Sebi subsequently issued a supplementary show-cause notice on March 3, 2025, placing additional material on record in relation to the allegations.While the enforcement proceedings were pending, the applicants filed settlement applications with Sebi under the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018.The matter was considered by Sebi’s Internal Committee, which held meetings with the applicants in September 2025 and May 2026. The applicants subsequently submitted revised settlement terms.The applications were then placed before Sebi’s high powered advisory committee on June 29 this year. The committee agreed with the Internal Committee’s recommendations and recommended settlement of the proceedings on the proposed terms.The recommendations were approved by Sebi’s panel of whole-time members on August 13.Sebi issued notices of demand to the applicants on August 25, requiring the settlement amounts to be remitted within 30 calendar days. The applicants paid the amounts on August 26, and Sebi confirmed receipt.The settlement order was passed on September 28 and came into force with immediate effect.
