SEBI Clears Adani Group; Delhi Court Lifts Media Gag

The Securities and Exchange Board of India (SEBI) recently cleared the Adani Group and its key executives of several allegations related to stock manipulation raised by the US-based short-seller, Hindenburg Research. Following an exhaustive investigation covering financial years 2013 to 2021, SEBI found no evidence supporting the accusations of insider trading or manipulative practices against Gautam Adani and the group companies. This regulatory decision has brought some much-needed relief to the conglomerate, whose market value had taken a massive hit since January 2023 when the allegations first surfaced. Adani shares surged by as much as 13 percent immediately after SEBI’s announcement, reflecting a revived investor confidence in the group’s operations.

The SEBI orders specifically addressed allegations concerning related-party transactions within the group, finding no wrongdoing or use of these transactions for market manipulation or diverting funds. SEBI ruled that these transactions were not fraudulent, and any amounts involved were repaid with interest before the investigation began. However, other investigations on minimum public shareholding and foreign portfolio investor holdings are still pending, indicating that the regulatory scrutiny remains ongoing in some areas.

The clean chit from SEBI was described as a “well-reasoned order” by legal experts, raising hopes that this decision is likely sustainable against future appeals and will restore the group’s credibility in the marketplace. Gautam Adani himself stated that transparency and integrity have always defined the group and expressed regret for the pain experienced by investors who lost money due to the “fraudulent and motivated” report by Hindenburg Research.

While SEBI’s verdict should boost investor sentiment, the media landscape around coverage of the Adani Group has been tense. Earlier in September 2025, a Delhi court had issued an interim gag order restraining several journalists, activists, and entities from publishing unverified, defamatory material about Adani Enterprises Limited (AEL) following allegations accusing the group of coordinated smear campaigns to harm its reputation. The court required removal of certain unverified posts from social media and websites within five days of the order.

However, the latest updates indicate that the court has lifted the blanket media gag, allowing for fair, verified, and substantiated reporting to resume. The court emphasized the importance of balancing protection of a company’s reputation with the journalists’ right to report truthfully and responsibly. This development is seen as a win for press freedom, while ensuring that misinformation and defamatory content do not continue unchecked.

This episode illustrates the complex dynamics between regulatory bodies, corporate reputation management, media freedom, and investor interests. SEBI’s clearance does not imply all issues are resolved, as investigations into other aspects of the Adani Group remain open. The Delhi court’s cautious approach also indicates that while the media should not spread baseless allegations, investigative journalism holds an essential role in holding large corporations accountable.

From an investor’s perspective, the SEBI relief has reinvigorated confidence, particularly after years of uncertainty and steep losses in Adani stocks. However, some market watchers advise caution because the group’s recovery depends on ongoing compliance with regulatory requirements and transparent disclosures.

For the wider public, this case highlights the challenges in striking a fair balance between corporate protections, regulatory oversight, and the democratic value of free press. Such high-profile cases are a reminder of the need for verified information, responsible journalism, and robust legal frameworks that address both reputation and transparency.

In conclusion, the SEBI clearance for Adani Group provides a significant positive signal to the markets and stakeholders, while the Delhi court’s lift of the media gag restores the space for open, responsible discourse about corporate affairs. Both developments underline the importance of checks and balances in a democratic society where financial markets, media, and law intersect.

With inputs from agencies

Image Source: Multiple agencies