Adani Energy gets Sebi notice for alleged misclassification of shareholding

The Securities and Exchange Board of India (Sebi) has sent a show-cause notice to Adani Energy Solutions regarding the wrongful categorisation of certain investors as public shareholders, the company disclosed in an exchange filing on its quarterly results on Tuesday.

“During the current quarter, a SCN (show-cause notice) has been received alleging wrongful categorisation of shareholding of certain entities as public shareholding and the consequences thereof. The company will respond to the regulatory and statutory authorities by providing information, responses, documents and/or clarifications, as applicable, in due course of time,” said the statement.

Market regulations mandate a minimum public shareholding of 25 per cent in a listed company. Earlier, New York-based short-seller Hindenburg had alleged that the Gautam Adani-led group had circumvented the norms on promoter holding with the help of connected foreign portfolio investors (FPIs).

The Adani group firm had also received a show-cause notice in the March quarter related to the validity of the peer review certificate of one of the former statutory auditors. The company has already responded to the same, the statement added.

Adani Energy Solutions also stated that there were no other pending regulatory proceedings against the company except for the two show-cause notices.

The market regulator had, in an earlier release in August, stated that it had concluded 23 of the 24 probes against the group.