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Adani Shares Decline Amid Hindenburg-SEBI Dispute

Shares of companies within the Adani Group experienced a decline on Monday following allegations made by the U.S.-based shortseller Hindenburg. The claims centered around a potential conflict of interest involving India’s securities regulator and offshore funds linked to the conglomerate.

In morning trading, Adani Enterprises and Adani Ports and Special Economic Zone saw their shares drop between 2.8% and 4%, respectively. Other firms within the group, including Adani Total Gas, Adani Energy Solutions, Adani Green Energy, and Adani Wilmar, faced declines ranging from 3% to 6%.

Hindenburg asserted that Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (SEBI), had invested in offshore funds associated with Adani—funds that had previously been accused of inflating Adani’s stock prices.

In a statement released on Sunday, Buch refuted the allegations, clarifying that her investments in the offshore entities were made two years prior to her taking on the role at SEBI.

This latest development marks a continuation of Hindenburg’s previous accusations against Adani, which included allegations of stock price manipulation and money laundering detailed in a report released last year. SEBI is currently conducting an ongoing investigation into these claims.

The initial Hindenburg report resulted in significant losses for Adani’s shares, although they have since recovered much of that decline over the past year. Hindenburg’s assertions have also drawn criticism from SEBI and India’s ruling BJP party, with SEBI issuing a show cause notice to the shortseller last month.

In a response filed over the weekend, Adani rejected the new allegations, labeling them as “a recycling of discredited claims” and asserting that the group has no commercial relationship with the individuals or matters referenced.

The downturn in Adani’s shares negatively impacted the broader Indian stock market on Monday, with significant indexes each slipping by approximately 0.4%.

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