Adani Stocks Plummet Up To 20% After US SEC Charges Gautam Adani With Bribery (Image:X/gautamadani)
Adani Group shares took an extreme and rigorous hit when the markets opened on Thursday, November 21, 2024, following the US Securities and Exchange Commission’s (SEC) announcement of charges against top executives including Gautam Adani, Sagar Adani and Cyril Cabanes in a massive bribery and fraud case.
The SEC alleged that the scheme aimed to secure a commitment from the Indian government to buy energy at above-market rates that may benefit Adani Green and Azure Power.
The Adani Group companies’ shares fell sharply with Adani Green Energy Ltd plummeting 16% to Rs 1,185.90 and Adani Enterprises Ltd dropping 10% to Rs 2,538.20.
Other Adani Group shares also confronted major losses, including Adani Power Ltd (13.18% drop), Adani Ports and Special Economic Zone Ltd (10% drop), Adani Wilmar Ltd (8.18% drop), ACC Ltd (9.61% drop) and New Delhi Television Ltd (12.43% drop).
Also, read| Gautam Adani Charged With Bribery And Fraud: Billion-Dollar Scandal Defrauding American Investors
On Wednesday, the SEC charged Gautam Adani, Sagar Adani and Cyril Cabanes with misleading US investors and engaging in a massive bribery scheme with the Indian government.
During the alleged scheme, Adani Green raised over $750 million from investors including $175 million from US investors with Azure Power’s stock traded on the New York Stock Exchange. The SEC seeks permanent injunctions, civil penalties and imprisonment.
Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement stated that the SEC will continue to hold individuals, including senior corporate officers and directors who are accountable for violating securities laws, as per PTI.
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Gautam Adani is accused of personally meeting with Indian officials and discussing the bribery scheme through encrypted messaging applications to avoid detection.
Adani Green and Azure Power executives are also accused of misleading investors through falsified financial disclosures and fraudulent statements about anti-corruption measures.
The SEC and the U.S. Department of Justice are pursuing permanent injunctions, civil penalties, and officer-director bans against the accused, emphasising accountability for global corporate corruption.
