Four Adani Group companies: Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone (APSEZ), and Adani Energy Solutions, along with Gautam Adani and other directors, have settled proceedings with the Securities and Exchange Board of India (SEBI) over alleged violations of minimum public shareholding (MPS) requirements.
The settlement, finalised on September 28, 2026, involved a combined payment of ₹1.482 crore, with each company’s group of applicants paying ₹37.05 lakh. The proceedings stemmed from complaints received in 2020 and subsequent regulatory notices alleging non-compliance with shareholding rules. The applicants settled without admitting or denying the allegations. In a separate order, SEBI also addressed allegations involving offshore investors and Vinod Adani, while imposing fines on two individuals for providing incomplete information.
Settlement Details
According to the settlement order, the four companies and their respective directors agreed to pay ₹37.05 lakh each, taking the total to ₹1.482 crore. The settlement amounts were paid on August 26, 2026, and SEBI issued its final settlement order on September 28. The companies covered by the proceedings are Adani Enterprises, Adani Power, APSEZ and Adani Energy Solutions, formerly known as Adani Transmission.
The case originated from complaints received in June and July 2020 alleging that certain Adani Group companies had not complied with minimum public shareholding requirements. Following a preliminary examination, SEBI initiated an investigation on October 23, 2020. The regulator subsequently issued a show-cause notice on September 27, 2024, followed by a supplementary notice on March 3, 2025.
The notices alleged violations of shareholding requirements under the Securities Contracts (Regulation) Rules, the erstwhile Listing Agreement and SEBI’s Listing Obligations and Disclosure Requirements Regulations. The applicants later sought to settle the proceedings under SEBI’s settlement framework. The regulator accepted the settlement terms and directed that the proceedings arising from the notices be disposed of.
Understanding MPS Rules
Minimum public shareholding rules generally require listed companies in India to maintain at least 25% of their shares in public ownership, subject to applicable regulatory provisions. The requirement aims to ensure that a portion of a company’s shares is held by public investors rather than being concentrated entirely among promoters and their associates.
The Adani Group proceedings concerned alleged non-compliance with these requirements and questions about the classification of certain shareholdings. Importantly, the settlement does not amount to an admission of wrongdoing by the applicants, nor does it establish that the alleged violations occurred. Reuters reported that the settlement order did not require corrective shareholding disclosures or contain a regulatory finding on the alleged violations. In a separate order, SEBI examined whether offshore investors holding shares in Adani companies were acting under the direction or control of Vinod Adani, Gautam Adani’s brother.
The regulator said it could not establish that Vinod Adani controlled the investment decisions of the funds concerned. SEBI also imposed fines of ₹20 lakh each on Nasser Ali Shaban Ahli and Chang Chung-Ling for failing to provide correct and complete information during the investigation. These findings and penalties arose from separate regulatory proceedings and should not be
The Logical Indian’s Perspective
Regulatory transparency and accountability are essential to maintaining public confidence in India’s financial markets. When questions arise about shareholding disclosures and compliance with securities laws, investors and the wider public deserve clear explanations of the allegations, the evidence examined and the outcomes reached.
As large business groups play a significant role in India’s economy, consistent enforcement of regulations, accessible disclosures and accountability remain important for protecting investors and strengthening trust in institutions.
Constructive dialogue between regulators, companies and investors can help ensure that complex financial matters are understood without speculation or misinformation. How can regulators and businesses work together to strengthen transparency and public confidence in India’s financial markets?
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News Alert! Four Adani Group firms, Gautam Adani, others settle proceedings with Sebi over alleged violation of minimum public shareholding norm: Order.
— Press Trust of India (@PTI_News) September 28, 2026
