The Securities and Exchange Board of India (SEBI) has closed its investigation into alleged minimum public shareholding (MPS) violations involving four Adani Group companies. In its final order dated September 28, 2026, the regulator said the allegations were not established and found no evidence that Vinod Adani controlled the investment decisions of two foreign portfolio investors (FPIs).
The matter dates back to complaints received by SEBI in June and July 2020. The regulator subsequently issued a show-cause notice covering alleged violations of MPS requirements and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
What Was the SEBI Investigation About?
The show-cause notice concerned shareholdings in Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone, and Adani Transmission, now known as Adani Energy Solutions.
SEBI had examined whether shares held through two FPIs between 2013 and 2018 were effectively promoter holdings but had been classified as public shareholding. The investigation also considered whether Vinod Adani exercised control over the FPIs and certain underlying investors.
MPS rules require listed companies to maintain the prescribed level of public shareholding, with promoter and promoter-group holdings excluded from the public category.
SEBI Finds No Evidence of Vinod Adani Controlling FPIs
In its final order, SEBI said it could not establish that Vinod Adani directed the management or policy decisions of the two FPIs involved in the case.
The regulator also examined allegations involving businessmen Nasser Ali Shaban Ahli and Chang Chung-Ling, whose entities had business and financial relationships with the investors. SEBI said such relationships alone were not sufficient to establish effective control over investment decisions.
The regulator also reached a similar conclusion regarding Opal Investments’ shareholding in Adani Power, finding that effective control had not been established.
MPS and PFUTP Allegations Not Established
Since the underlying allegation of effective control over the FPIs and Opal was not established, SEBI did not uphold the related allegations concerning violations of minimum public shareholding requirements.
The regulator consequently also dropped the associated allegations under the PFUTP Regulations. The final order marks the closure of the proceedings arising from the 2020 complaints.
SEBI’s order also noted that allegations involving incorrect or incomplete information were established against Nasser Ali Shaban Ahli and Chang Chung-Ling, with a penalty of ₹20 lakh imposed on each. Eighteen other entities named in the show-cause notice had already settled their proceedings.
Disclaimer: This article is based on SEBI’s final order and publicly available reports. Regulatory proceedings and findings should be read in their full context. Readers should refer to the official SEBI order and latest market disclosures before making any investment-related decisions.