Several listed firms under the Adani conglomerate were issued notices by the market regulator in the previous financial year for violations of certain listing and other norms. According to regulatory filings by the companies, Adani Enterprises, Adani Green Energy, Adani Power, Adani Energy Solutions, Adani Total Gas and Adani Wilmar received show-cause notices from the Securities and Exchange Board of India (SEBI) in the last quarter of FY2024. Adani Ports also confirmed receiving such communication from the regulator during the fiscal year.
While the notices pointed out lapses in complying with listing obligations and disclosure requirements with regards to related party transactions, the groups maintained that it did not have any tangible financial impact. Adani Enterprises stated it was sent notices alleging non-adherence to provisions around deals with affiliated counterparts and validity periods for auditor certifications in older reporting cycles. However, management at the firm believes the regulatory actions did not materially affect their books.
Adani Green disclosed its notice dealt with qualification periods for one of its joint auditors in past financial statements, to which it duly responded. This is not the first time companies from the business conglomerate have faced questions – earlier an overseas investment firm had raised conflict of interest charges, which were rejected. Regulators also formed committees to independently evaluate such claims.
While further specifics on the breaches mentioned in the notices were not furnished, the disclosures reiterate regulatory authorities’ vigil on compliance at corporate houses. It remains to be seen if any stricter actions are initiated based on their review of the companies’ responses.
