Sebi sends notice to Adani Group alleging wrongful categorisation of certain investors as public shareholders

The Securities and Exchange Board of India(Sebi) has sent a notice to Adani Group for alleged wrongful classification of certain investors as public shareholders, according to disclosures made by Adani Energy Solutions in its September quarter results filed on Tuesday, October 22. It said the notice was received during the September quarter but did not add any further details.

“During the current quarter, a SCN (show-cause notice) has been received alleging wrongful categorization of shareholding of certain entities as public shareholding and consequences therefrom. The company will respond to the regulatory and statutory authorities by providing information, responses, documents and/or clarifications, as applicable, in the due course of time,” the disclosure read.

Adani Energy Solutions however added that based on various independent opinions obtained from lawyers and an accounting review undertaken by the Adani Group, there were no further regulatory proceedings against the company except two pending show-cause notices.

Apart from the notice about investor classification, the group had received another notice from Sebi in the March quarter questioning the validity of peer review certificates issued by the statutory auditors. This issue is also pending as of now.