Adani Group's troubles may increase in India after allegations of bribery. (File photo: Gautam Adani)
Adani Group's troubles in India may increase after a case is registered in the American court on bribery charges. SEBI is probing whether the group violated rules on disclosing market influencing information?
Meanwhile, SEBI has also sought clarification from the group. SEBI has sought answers regarding the cancellation of the airport expansion deal in Kenya and the case in America. However, the group is yet to respond.
According to sources, SEBI has also sought information from stock exchange officials. It asked whether Adani Green Energy Limited failed to adequately respond to the US Justice Department's investigation into bribery allegations. Investigation of facts may last two weeks. After this SEBI will decide whether to initiate a formal investigation or not.
It is known that SEBI has also investigated Adani Group on the allegations of Hindenburg Research. However, it has not yet disclosed its results. Meanwhile, White House spokesperson Karine Jean-Pierre has said that she is aware of the allegations against Adani. As far as relations between India and America are concerned, relations between the two countries are strong.
Sensex rises 1,961 points, Adani 6 out of 10 shares of the group rose After seven weeks of decline, there was a tremendous rise in the domestic stock market on Friday. Sensex closed at 79,117 with a gain of 1961 points (2.54%). It also reached a gain of 2,062 points during the day. Nifty gained 557 points (2.39%) and closed at 23,907. This is the biggest one-day jump after June 5, i.e. in five and a half months. With this increase, the market cap of BSE listed companies increased by Rs 7.32 lakh crore (1.72%) to Rs 432.71 lakh crore.
New problem: Some banks are considering stopping giving new loans. Adani Group may face shortage of funding from the beginning of the case in America. Credit analysts say that some banks are considering a temporary ban on giving new loans to Adani Group. However, the existing debts of the group will remain intact. Research firm CreditSights has expressed near-term concerns.
She said refinancing was the biggest concern for the group's green energy business. Rating agency S&P has warned that the group will need regular access to equity and debt markets, but it may find few buyers. Domestic, international banks and bond investors may limit their investments.
What next: Fear of impact on international investment in India On Friday, the price of Adani Ports and Special Economic Zone's 2029 bonds fell by $ 2.5 to $ 87.8. It has fallen by more than $5 in two days. At the same time, long maturity bonds fell $5 to below 80 cents in two days. In such a situation, this matter cannot be limited to Adani.
There is a possibility of a widespread impact on India's renewable energy sector and international investment. According to analyst Nimish Maheshwari, the dispute may reduce international investment in India's renewable energy sector. Investors may demand greater transparency and scrutiny, which may slow down project financing.
BJD said- the agreement was with the central government, Adani not from Biju Jata Dal (BJD) has denied reports regarding power purchase agreement with Adani Group in Odisha. The party said the agreement in 2021 was between two government agencies and not with the Adani Group. This is part of the Centre's scheme, 'Manufacturing Linked Solar Scheme'. This was to purchase 500 MW of renewable energy.
America is strict regarding violation of rules On the other hand, Sanjay Wadhwa, Acting Director of the Enforcement Department of US Securities and Exchange, said that if there is a violation of US securities laws, we will continue to take strict action and hold them accountable.
The way for compromise also opened: According to legal experts, the case filed by the US Justice Department can be appealed. A legal solution like compromise can be explored. Although this will cost a lot, it can provide relief from legal battles.
According to Shiv Sapra of Kochhar & Company, the payment in the settlement may also be in the form of a penalty. However, this would also mean an admission of wrongdoing.
Supreme Court lawyer Tushar Kumar said such a settlement could help Adani avoid prolonged public scrutiny and prevent reputational damage, which would not be possible in litigation. According to US law, a settlement can be reached in a bribery case under FCPA (Foreign Corrupt Practices Act), but there is no law in such cases in India.
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Adani Group accused of bribery and fraud in America, SEBI will investigate for violation of disclosure rules
Securities Exchange Board of India i.e. SEBI can now investigate Adani Group for giving wrong information and misleading investors. Market regulator SEBI will investigate whether Adani Group has violated mandatory rules for disclosure of information about market activities.
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