New Delhi, Oct 22 (PTI) Adani Energy Solutions Ltd (AESL), the power transmission arm of the Adani Group, on Tuesday said it has received a notice from SEBI alleging miscategorization of certain investors as public shareholders.

Without giving details, the company said in the notes to its second quarter earnings report that it will respond to regulatory and statutory authorities with relevant information/clarifications.

“During the current quarter, an SCN (show cause notice) was received, alleging erroneous categorization of the participation of certain entities as public participation and the consequent consequences thereof,” AESL said. “The Company will respond to regulatory and statutory authorities by providing information, responses, documents and/or clarifications, as appropriate, within the required time frame. » SEBI’s listing rule provides that listed companies hold at least 25 per cent of the equity held by public investors. Foreign portfolio investors with links to the promoter group are generally referred to as promoter holding companies.

Seven of the ten listed companies of the Adani Group have received show cause notices from the Securities and Exchange Board of India (SEBI) for alleged violation of related party transactions and non-compliance with listing regulations during the quarter ended 31 March. indicated in their regulatory documents with the stock exchanges.

While group flagship Adani Enterprises Ltd, renewable energy company Adani Green Energy Ltd (AGEL) and city gas distributor Adani Total Gas Ltd said in May that SEBI had sent notices to their parent or holding company controlled by conglomerate chairman Gautam Adani, ports firm Adani Ports & Special Economic Zone, Adani Power, power transmission firm Adani Energy Solutions and commodities firm Adani Wilmar said they had received SEBI notices.

The SEBI notices were part of an investigation that followed US short seller Hindenburg Research leveling damning allegations of corporate fraud and stock price manipulation against the Adani Group in January 2023. Although Adani vehemently denied all allegations, the report triggered a stock market rout that wiped out about $150 billion of the group’s market value at its lowest point.

Most of the group’s shares rebounded as the ports-to-energy conglomerate plotted a comeback strategy.

A show cause notice is not an indictment and seeks an explanation from the entities as to why legal action should not be taken against them.

AGEL in the filing said that a short seller report (SSR) contained certain allegations against certain Adani group companies.

The matter was referred to the Supreme Court (SC), which observed that SEBI was investigating the matter while also constituting an expert committee to investigate and suggest measures to strengthen laws and regulations existing.

The committee of experts, in its report of May 6, 2023, found no regulatory failure with regard to the applicable laws and regulations. SEBI has also concluded its investigations in 22 of the 24 cases as per the status report dated August 25, 2023 to the SC.

On January 3, 2024, the SC disposed of all matters related to various petitions, including those relating to separate independent investigations related to the allegations in the RSS. Further, the SC directed SEBI to complete the two ongoing investigations, preferably within three months, and take its investigations (of which 22 have already been completed) to their logical conclusion in accordance with law.

During the quarter ended March 31, 2024, the holding company received a show cause notice from SEBI regarding the validity of the peer review certificate (PRC) of one of the joint auditors from previous financial years, to which the holding company responded. PTI ANZ MR

This report is automatically generated from PTI news service. ThePrint assumes no responsibility for its content.