Four Adani Group companies and 14 individuals, including chairman Gautam Adani, have paid a combined sum of ₹1.48 crore to the Securities and Exchange Board of India (SEBI) to settle proceedings related to alleged violations of minimum public shareholding (MPS) norms. The settlement, finalized on August 26, 2026, allows the entities to resolve the matter without admitting or denying guilt, as per SEBI's final order dated September 28, 2026.
Details of the Settlement
The companies involved in the settlement include Adani Enterprises Ltd (AEL), Adani Power Ltd (APL), Adani Ports and Special Economic Zone Ltd (APSEZ), and Adani Transmission Ltd (now known as Adani Energy Solutions Ltd). In addition to Gautam Adani, other individuals like Rajesh Adani and Pranav Vinod Adani were also part of the settlement agreement.
SEBI's investigation began in October 2020 following complaints received in June and July 2020, which alleged non-compliance with MPS requirements by certain Adani Group companies. Under Indian regulations, listed companies are mandated to maintain at least 25% public shareholding.
The Allegations and SEBI's Findings
The show-cause notice issued by SEBI in September 2024, with a supplementary notice in March 2025, focused on investments made by foreign portfolio investors (FPIs) Emerging India Focus Funds and EM Resurgent Fund in AEL, APL, APSEZ, and Adani Transmission between June 2013 and June 2018. The regulator alleged that these investments were not genuinely independent public shareholdings but were controlled by Vinod Adani, who was considered part of the promoter group. Consequently, SEBI argued these holdings should have been classified as promoter shareholding rather than public.
Similar allegations were raised regarding Opal Investments' holding in Adani Power. However, in a significant development, SEBI Whole Time Member Kamlesh Chandra Varshney concluded that there was insufficient evidence to establish that Vinod Adani exercised effective control over the investment decisions of the two FPIs or Opal.
As a result, SEBI ultimately found that the central allegations of MPS violations were not established against the companies and individuals. The related allegations under the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations also did not survive. The regulator noted that the entities had voluntarily chosen to settle the allegations, and their settlement had attained finality before the final order was passed.