MUMBAI – India's stock market regular has dismissed some allegations of stock manipulation and financial fraud against billionaire Gautam Adani and his group of companies, made by US short-seller Hindenburg Research.

The Securities and Exchange Board of India (Sebi) began investigating the conglomerate in 2023, after Hindenburg Research published explosive reports, causing the group a loss of more than $100bn in market value in days.

On Thursday, Sebi dismissed the allegations against Adani's companies, saying the inquiry did not reveal any violation of regulatory norms.

"Sebi has reaffirmed what we have always maintained, that the Hindenburg claims were baseless," Adani posted on X.

On 24 January 2023, Hindenburg Research, which specialises in "short-selling" – betting against a company's share price in the expectation that it will fall – publised a 106-page report accusing the Adani Group of accounting irregularities, stock manipulation and of using offshore shell companies to inflate share prices.

Sebi dismissed some of these allegations on Thursday saying that according to its rules, there were no transactions between Adani's companies and related-parties and hence, did not need to be disclosed to investors nor did they consitute market manipulation.

It also said that there were no allegations of money being siphoned off or funds being diverted or investors losing money. It added that loans taken by Adani companies from any entity had been paid back even before the start of the investigation.

"On merit too, it is held that impugned transactions cannot be classified as manipulative or fraudulent transactions or unfair trade practices," the order notes.

Sebi has cleared two charges against Adani firms, but 22 cases on issues from insider trading to public float violations remain pending, according to Reuters news agency.

Hindeburg's allegations had sparked furious political rows in the country, with India's main opposition Congress party accusing Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) of not taking action against the Adani group.

Adani, who is one of Asia's richest men, is perceived as being close to Mr Modi and has long faced allegations from opposition politicians that he has benefited from his political ties, which he denies.

Last year, the short-seller also accused former Sebi chief Madhabi Puri Buch of having links with offshore funds used by the Adani group.

In May, India's anti-corruption watchdog cleared her of all corruption charges levelled against her on the basis of Hindenburg's allegations.

Earlier this year, Nate Anderson, the founder of Hindenburg Research, announced that he was disbanding the company almost eight years after starting it.

Anderson didn't share a specific reason for his decision, but expressed a desire to spend more time with friends and family in the future. – BBC