The Indian government is in touch with the market regulator SEBI regarding the allegations made by a U.S. short seller last week that cast doubts on Adani Group's business practices, a senior government source told Reuters on Wednesday.
The government is awaiting a report from SEBI on the matter, the source said, requesting anonymity as they are not authorised to speak to media.
SEBI is examining a recent crash in shares of Adani Group and looking into any possible irregularities in a share sale by its flagship company, a source with direct knowledge of the matter told Reuters on Wednesday.
Also Read: Adani's shares plummet over $80 billion as Hindenburg report woes continue
The share plunge was sparked by a report by Hindenburg Research last week which alleged improper use by the Adani Group of offshore tax havens and stock manipulation. It also raised concerns about high debt and the valuations of the seven listed Adani companies.
SEBI is also examining allegations made in a report by U.S. short-seller Hindenburg Research that Adani companies did not declare related party transactions as required, the source said, speaking on condition of anonymity since the matter is confidential.
{{/usCountry}}SEBI is also examining allegations made in a report by U.S. short-seller Hindenburg Research that Adani companies did not declare related party transactions as required, the source said, speaking on condition of anonymity since the matter is confidential.
{{/usCountry}}Adani Group has denied allegations on the use of tax havens and concerns on high debt levels made by short seller Hindenburg Research.
Shares in Adani Enterprises, often described as the incubator of Adani businesses, plunged 28% on Wednesday, bringing its losses since the Hindenburg report to more than $18 billion. Adani Ports and Special Economic Zone dropped 19%. Both stocks marked their worst day ever.