SEBI is expected to seek clarification on allegations of disclosure violations involving the Adani Group, linked to an indictment by the US Department of Justice (DOJ) and the US Attorney for the Eastern District of New York.

“SEBI will take action if any violations of securities laws are detected,” an expert told BT. However, they noted that it is “premature” to expect regulatory conclusions on bribery charges currently under US jurisdiction.

Central to the SEBI move is a Bloomberg report that claimed US prosecutors were investigating whether Adani Green or its associates bribed officials for preferential treatment on an energy project. The company denied any involvement, stating that it has “received no communication” from the DOJ and emphasized its compliance with anti-bribery laws in India and abroad.

In a March 19 filing, Adani Green clarified: “This relates 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 notification from the DOJ regarding the allegations .It is aware of a DOJ investigation 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 the scope of the US investigation or its alleged dealings with third parties.”

The DoJ’s indictment alleges that the energy firm filed false documents with the NSE and BSE, denied notice of a US investigation and issued misleading statements attributing potential US anti-corruption violations to an outside party.

“The written responses falsely claimed that the conglomerate and the Indian energy company had not been notified of the US government’s investigation and included other misleading statements about the bribery scheme and the conglomerate’s awareness,” the DOJ said.

An Adani Group representative dismissed the allegations as “baseless,” adding: “The allegations in the indictment are allegations, and the defendants are presumed innocent unless proven guilty. All possible legal remedies will be sought.”

Experts clarified that SEBI’s jurisdiction is limited to securities law violations, while bribery charges fall under the Central Bureau of Investigation (CBI). Economic crimes are handled by the Enforcement Directorate (ED), and business-related crimes are investigated by the Serious Fraud Investigation Office (SFIO).

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 rally in Adani Group shares.

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 US legal developments and setbacks in Kenya.

The market rally cut across sectors, with PSU banks, IT and real estate stocks rising up to 3%, supported by positive sentiment in global markets.