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Adani Family Cleared of MPS Violations by Sebi
29 Sep
Summary
- Sebi cleared Adani family of minimum public shareholding violations.
- Two individuals fined ₹20 lakh each for providing misinformation.
- Adani Group companies settled MPS norm violations for ₹1.48 crore.
The Securities and Exchange Board of India (Sebi) has exonerated Gautam Adani and other Adani family members from accusations of violating minimum public shareholding (MPS) norms concerning four group companies. This ruling follows an investigation initiated in October 2020 after complaints of non-compliance were lodged in June and July of the same year.
While the Adani family was cleared, Sebi imposed a ₹20 lakh penalty each on Nasser Ali Shaban Ahli and Chang Chung-Ling for failing to furnish correct and complete information. Separately, four Adani Group companies—Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone, and Adani Energy Solutions—along with 13 other individuals, settled related proceedings by paying a total of ₹1.48 crore.
The core allegation involved the violation of MPS requirements, which mandate a minimum of 25% public shareholdings. It was suggested that investments made by two foreign portfolio investors were directed and controlled by Vinod Adani, which should have been considered promoter-group holdings. However, Sebi found insufficient evidence to substantiate these claims and establish Vinod Adani's effective control over the foreign portfolio investors.
