SEBI notice to Adani firm over alleged wrongful categorisation of shareholding
New Delhi, Oct 22: Adani Energy Solutions Ltd (AESL), the power transmission arm of the Adani group, on Tuesday said it has received a notice from SEBI alleging wrongful categorisation of certain investors as public shareholders.
Without giving details, the firm in notes to its second-quarter earnings statement said it will respond to regulatory and statutory authorities by providing relevant information/clarifications.
The group's renewable energy firm, Adani Green Energy Ltd, which also declared its second quarter earnings, did not receive any new notice from SEBI.
"During the current quarter, an SCN (show-cause notice) has been received alleging wrongful categorization of shareholding of certain entities as public shareholding and consequences therefrom," AESL said. "The company will respond to the regulatory and statutory authorities by providing information, responses, documents and/or clarifications, as applicable, in the due course of time."
SEBI's listing rule provides for listed firms having a minimum of 25 per cent of equity owned by public investors. Foreign portfolio investors having links to the promoter group are generally clubbed as promoter holding.
Seven out of the 10 listed firms of Adani group had 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 in the quarter ended March 31, the companies had stated in their regulatory filings to stock exchanges.
While group's flagship Adani Enterprises Ltd, renewable energy firm Adani Green Energy Ltd (AGEL) and city gas distributor Adani Total Gas Ltd in May stated that SEBI sent notices to their parent or holding company controlled by the conglomerate's chairman Gautam Adani, ports company Adani Ports & Special Economic Zone, Adani Power, electricity transmission firm Adani Energy Solutions, and commodities firm Adani Wilmar had said they have received SEBI notices.
The SEBI notices were part of a probe that followed US short-seller Hindenburg Research making damning allegations of corporate fraud and stock price manipulation against the Adani Group in January 2023. Though Adani vehemently denied all allegations, the report triggered a stock rout that wiped out about USD 150 billion of the group's market value at its lowest point.
Most of the group stocks have bounced back as the ports-to-energy conglomerate plotted a comeback strategy.
A show cause notice is not an indictment and seeks an explanation from entities as to why legal action should not be taken against them.
AGEL in the filing said a short-seller's report (SSR) made certain allegations against some of the Adani Group companies.
The matter went to the Supreme Court (SC), which observed that SEBI was investigating the matter while also constituting an Expert Committee to investigate as well as suggest measures to strengthen existing laws and regulations.
The Expert Committee in its May 6, 2023, report found no regulatory failure in respect of applicable laws and regulations. The SEBI also concluded its investigations in 22 of the 24 matters as per the status report dated August 25, 2023, to the SC.
On January 3, 2024, the SC disposed of all matters in various petitions, including those relating to separate independent investigations relating to the allegations in the SSR. Further, the SC directed SEBI to complete the pending two investigations, preferably within three months, and take its investigations (including 22 already completed) to their logical conclusion in accordance with the law.
During the quarter ended March 31, 2024, the holding company received a show cause notice from the SEBI relating to the validity of Peer Review Certificate (PRC) of one of the joint auditors in earlier financial years, which the holding company has responded to.
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Sanjay Raut demands re-election, alleges irregularities in EVMs during Maharashtra polls
Mumbai, Nov 25: Shiv Sena (UBT) MP Sanjay Raut on Monday demanded a re-election in Maharashtra using ballot papers, claiming there were irregularities with the electronic voting machines (EVMs).
Talking to reporters, Raut alleged several complaints about EVMs malfunctioning and questioned the integrity of the recently held elections.
The BJP-led Mahayuti won 230 out of 288 seats in the assembly elections, while the opposition Maha Vikas Aghadi managed 46 seats, with Shiv Sena (UBT) winning just 20 out of 95 seats it contested.
"We have received nearly 450 complaints regarding EVMs. Despite raising objections repeatedly, no action has been taken on these issues. How can we say these elections were conducted fairly? Hence, I demand that the results be set aside and elections be held again using ballot papers," Raut said.
Citing some instances, he said a candidate in Nashik reportedly received only four votes despite having 65 votes from his family, while in Dombivli, discrepancies were found in EVM tallies, and election officials refused to acknowledge the objections.
The Sena (UBT) leader also questioned the credibility of the landslide victories of some candidates, saying, "What revolutionary work have they done to receive more than 1.5 lakh votes? Even leaders who recently switched parties have become MLAs. This raises suspicions. For the first time, a senior leader like Sharad Pawar has expressed doubts about EVMs, which cannot be ignored."
Asked about the MVA's poor performance in the elections, Raut rejected the idea of blaming a single individual.
"We fought as a united MVA. Even a leader like Sharad Pawar, who commands immense respect in Maharashtra, faced defeat. This shows that we need to analyse the reasons behind the failure. One of the reasons is EVM irregularities and the misuse of the system, unconstitutional practices, and even judicial decisions left unresolved by Justice Chandrachud," he said.
Raut stressed that though internal differences might have existed within the MVA, the failure was collective.
He also accused the Mahayuti of conducting the elections in an unfair manner.
"I cannot call the elections fair given the numerous reports of discrepancies in EVMs, mismatched numbers, and vote irregularities across the state," Raut said.
