Sources have told BT that the stock exchanges sought clarifications on disclosure violations soon after the DOJ indictment became public on Thursday. 
Special 
Sources have told BT that the stock exchanges sought clarifications on disclosure violations soon after the DOJ indictment became public on Thursday. Indian stock exchanges have sought clarifications on allegations regarding disclosure violations by Adani Group entities, linked to an indictment by the U.S. Department of Justice (DOJ) and the U.S. Attorney for the Eastern District of New York.
Sources have told BT that the stock exchanges sought clarifications on disclosure violations soon after the DOJ indictment became public on Thursday.
'Once the Adani Group provides its clarification, the same will be made public as per normal procedure', the source said, adding the Securities and Exchange Board of India may step in only after that.
Sources clarified that unlike the US market regulators powers, India's market regulator jurisdiction is concerned with securities law violations, while bribery allegations fall under the Central Bureau of Investigation (CBI) ambit. Money laundering probes are handled by the Enforcement Directorate (ED), while company-law matters are investigated by the Serious Fraud Investigation Office (SFIO).
“SEBI will take action only if securities law violations are found,” an expert told BT. However, they noted it is "premature" to expect regulatory conclusions on bribery allegations currently under U.S. jurisdiction.
US prosecutors are investigating whether Adani Green or its associates bribed Indian state officials for favorable treatment on an energy project. The firm had denied any involvement, stating it “has not received any notice” from the DOJ and emphasized its compliance with anti-bribery laws in India and abroad.
In a March 19 filing, Adani Green clarified: “This pertains to the article titled ‘US Probing Indian Billionaire Gautam Adani and His Group Over Potential Bribery’ published by Bloomberg on March 15, 2024. The Company has not received any notice from the DOJ regarding the allegations. It is aware of an investigation by the DOJ into potential violations of U.S. anti-corruption laws by a third party. The Company has no relationship with the third party and cannot comment on the scope of the U.S. investigation or its alleged dealings with the third party.”
The DOJ indictment alleges the energy firm submitted false documents to NSE and BSE, denying notification of a U.S. investigation and issuing misleading statements attributing potential U.S. anti-corruption violations to an external party.
“The written responses falsely claimed that the conglomerate and the Indian energy company had not received notice of the U.S. government's investigation and included other misleading statements about the bribery scheme and the conglomerate's awareness,” the DOJ stated.
An Adani Group representative rejected the charges as “baseless,” adding, “The charges in the indictment are allegations, and the defendants are presumed innocent unless proven guilty. All possible legal recourse will be sought.”
Despite the allegations, markets showed resilience. On Friday, the BSE Sensex surged over 2,000 points, and the Nifty50 reclaimed the 23,900 mark, driven by strong global cues and a rebound in Adani Group stocks.
Adani Enterprises gained 2.5%, while Ambuja Cement led the group’s recovery with a 6% jump. Other group stocks, including Adani Green Energy and Adani Ports, rose 1% to 2%. This came after significant losses earlier in the week, triggered by the U.S. legal developments and setbacks in Kenya.
The market rally extended across sectors, with PSU banks, IT, and realty stocks gaining up to 3%, supported by positive sentiment in global markets.
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