SEBI Drops MPS Violation Proceedings Against Gautam And Vinod Adani

The Securities and Exchange Board of India (SEBI) has concluded proceedings against Gautam Adani, Vinod Adani and other members of the Adani family over alleged violations of minimum public shareholding (MPS) norms. As per the rules, a minimum public shareholding of 25% is mandatory.

The proceedings examined whether two foreign portfolio investors (FPIs) that held shares in four Adani Group companies were effectively controlled by Vinod Adani. SEBI's investigation covered investments made between June 2013 and June 2018.

The four companies were Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone (APSEZ), and Adani Transmission (now known as Adani Energy Solutions).

SEBI Finds Insufficient Evidence Against Adani Family

SEBI examined the investments made by Emerging India Focus Funds (EIFF) and EM Resurgent Fund (EMR). The regulator sought to determine whether Vinod Adani influenced or directed the FPIs' investment decisions.

However, SEBI found insufficient evidence to establish that Vinod Adani exercised effective control over the FPIs. The regulator also found no evidence that he directed their management or policy decisions or participated in their investment decisions concerning the Adani Group companies.

Two Individuals Fined ₹20 Lakh Each

While the proceedings against the Adanis were concluded, SEBI imposed penalties on two other individuals involved in the investigation.

Nasser Ali Shaban Ahli and Chang Chung-Ling were each fined ₹20 lakh for failing to provide correct and complete information to the regulator.

Separately, four Adani Group companies, Gautam Adani and other individuals settled related MPS proceedings with SEBI. The settlement involved a combined payment of approximately ₹1.48 crore and was concluded without admission or denial of the allegations.

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