SEBI issues 2 notices to Adani Ent on related party deals

Mumbai: Adani Enterprises on Thursday said it had received two show cause notices from markets regulator Sebi during the March quarter. The notice alleges “non-compliance with the provisions of the Listing Agreement and LODR (Listing Obligation and Disclosure Requirement) Regulations relating to related party transactions in respect of certain transactions with third parties and compliance with the statutory auditors in respect of previous years.” The company also believes that the validity of the peer review certificates “does not have a material consequential impact on the relevant financial statements”, it said in a regulatory filing. There has been no such non-compliance.

In January 2023, US-based short seller Hindenburg Research had alleged serious corporate governance and other issues within the Adani group of companies. As a result, over the next five weeks, the group’s shares fell sharply, destroying approximately 65% ​​of the group’s total market value. Following those allegations, a case was also filed in the Supreme Court, which then asked SEBI to investigate the allegations made in the Hindenburg report. In January this year, the Supreme Court had passed its order in the investigation and asked SEBI to complete two of the 24 issues which it was considering and were still incomplete. Adani Enterprises said its consolidated net profit fell 39% to Rs 449 crore in the March quarter. The decline was due to one-time airport dues and commercial mining losses.

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