![The Adani company has been served notices for alleged related party transaction violations and violation of listing rules. The Adani company has been served notices for alleged related party transaction violations and violation of listing rules.](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=383)
The Adani company has been served notices for alleged related party transaction violations and violation of listing rules.
Adani Group's cement companies ACC and Ambuja Cement said they had not received any notice from SEBI.
Seven of the 10 listed companies of the Adani group have received show cause notices from the Securities and Exchange Board of India (SEBI) for alleged related party transaction violations and violation of listing rules, the companies said in a regulatory filing. stock exchange.
The group's flagship Adani Enterprises Ltd, renewable energy company Adani Green Energy Ltd (AGEL) and city gas distributor Adani Total Gas Ltd are the parent companies controlled by SEBI conglomerate Chairman Gautam Adani, port company Adani Ports & Special Economic Zone; He said he had sent a notice from the holding company. , Adani Power, transmission company Adani Energy Solutions and raw materials company Adani Wilmar said they had received the SEBI notice.
All of the companies in nearly identical reports released as part of the notes to their respective January-March quarter and 2023-24 financial results reports said there had been no material breaches of applicable laws and regulations and no significant consequential impact. However, the company's auditors, excluding Adani Green Energy, Adani Total Gas Ltd and Adani Wilmar, issued qualified opinions on the financial statements, hinting that the SEBI findings may have an impact on future financial statements. .
The cement giants, ACC and Ambuja Cement, said they had not received any notice from SEBI on the matter and there was no disclosure issue related to them and they had not complied with the relevant regulations. Its media unit NDTV had no comment on receipt of the SEBI notice. The SEBI notice is part of an ongoing investigation after US short-selling firm Hindenburg Research filed charges against Adani Group in January 2023, accusing it of corporate fraud and stock price manipulation. Although Adani strongly denied all allegations, the report sparked a plunge in its stock price. At its lowest point, this amounts to about $150 billion of the group's market value.
Most of the group's stocks rebounded as the port energy giant developed a comeback strategy. A show cause notice is not a prosecution and seeks an explanation from the agency as to why legal action should not be taken.
AGEL, in a filing on Friday, said its Short Selling Report (SSR) has made certain allegations against some Adani group companies. The matter went to the Supreme Court (SC), which held that SEBI is looking into the matter and at the same time forming an expert committee to look into it and suggest measures to strengthen the existing laws and regulations.
AGEL said in its May 6, 2023 report that it found “no regulatory failures with respect to applicable laws and regulations.” “SEBI has also concluded investigation in 22 out of 24 issues as per the status report dated August 25, 2023 submitted to the SC.” On January 3, 2024, the SC disposed of all the issues in the various petitions, including those related to a separate independent inquiry into the allegations against SSR. The SC also directed SEBI to complete the two pending investigations, preferably within three months, and take the investigations (including the 22 already completed) to their logical conclusion in accordance with the law. “During the quarter ended March 31, 2024, the holding company received and responded to a show cause notice from SEBI relating to the validity of the Peer Review Certificate (PRC) of one of its joint auditors for the previous financial year. “He said.
Adani Enterprises Ltd (AEL) on Thursday said it has received a notice from SEBI alleging non-compliance with the provisions of the Listing Agreement and LODR Regulations regarding certain transactions with third parties and related party transactions and the validity of its peer review certificates. Statutory auditor for the previous year. However, the nature of the charges was not disclosed.
While AGEL characterized the notice as a notice of a technical nature that “does not have a material consequential effect on the relevant financial statements,” AEL stated that “the material consequential effect of the above show cause notice is that it is not a notice on the relevant financial statements and is not a material breach.” “There is none,” he said. Applicable laws and regulations.” All Adani group companies said in April 2023 that their parent company had conducted a review of the transactions mentioned in the SSR through an independent assessment by a law firm. (a) the relevant parties of the Parent Company or its Subsidiaries, (b) the Parent Company (and the Group), in accordance with that Framework, comply with the requirements of applicable laws and regulations.”
“Pursuant to the SC order dated January 3, 2024, Adani Group has commenced an independent legal and accounting review of the allegations and other allegations against SSR (including all allegations relating to the Group). Reaffirm compliance with applicable laws and regulations. This independent review did not identify any non-compliance or misconduct by the group and we have recorded the results of this review,” AGEL said. Based on the above independent assessment and the fact that there are no regulatory or adjudicatory proceedings currently pending except those referred to in the SC order and SEBI notification, management has concluded that there has been no violation of any applicable laws. The companies added that, as per the regulations, there is no result of any other claims against the group than those mentioned in the SSR and therefore the financial statements do not contain any adjustments in this regard.
APSEZ said it has received a show-cause notice from SEBI alleging that it failed to comply with the provisions on related party transactions in relation to transactions previously entered into with certain parties and failed to recover deposits on termination of contracts that resulted in the company's funds being unavailable. Yes. Core business objectives. In its response to SEBI, the company said it denied all the allegations, saying the transactions were in full compliance with existing laws and regulations.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)