SEBI Clearance For Adani Group Sends Positive Signals To Investors: Crossbridge Capital

The Adani Group has received a clean chit from the Securities and Exchange Board of India (SEBI), which according to Manish Singh, Chief Investment Officer at Crossbridge Capital, will substantially enhance investor confidence and potentially lead to an upward re-rating for the conglomerate.

In his conversation with NDTV Profit, Singh emphasized, "Market regulators play a critical role for investors when questions arise about a business's legitimacy. When regulators conduct thorough investigations and subsequently declare a company clean, it significantly bolsters investor confidence."

#SEBI's Clean Chit To Adani: Big boost not only for #Adani Group but also for India, says @CrossbridgeView's Manish Singh. @Heeraal @_nirajshahBackground: https://t.co/QsfmMgOAc7 pic.twitter.com/Opd7ypVWMI

— NDTV Profit (@NDTVProfitIndia) September 19, 2025

These comments follow SEBI's dismissal of allegations made by US short-seller Hindenburg Research against Adani Group Chairman Gautam Adani and key group entities including Adani Enterprises, Adani Ports, and Adani Power.

In January 2023, Hindenburg had alleged that Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure were utilized for routing funds between Adani companies.

However, SEBI concluded in two separate orders that no violations had occurred, noting that at the time of the transactions, dealings with unrelated parties weren't classified as related-party transactions—a definition that was later revised.

Singh highlighted that regulatory clarity significantly influences investor sentiment. It strengthens confidence, which is crucial for attracting foreign investment. "SEBI's clean chit represents a major boost not just for the Adani Group but for India as a whole. Foreign investors looking to invest in India will closely examine the regulatory environment, their control mechanisms, and their actions," he stated.

According to Singh, when investors see regulators clearing a company after investigation, it reassures them about the business's legitimacy and reduces market uncertainty.

Regarding market implications, Singh suggested a potential re-rating of Adani Group valuations. "I anticipate a re-rating in terms of multiples, because when allegations are made against a company, investors typically await resolution before presenting the investment to their committees," he explained.

Singh added that with these doubts now resolved, large investors operating through investment committees that require consensus can proceed. Consequently, the stock may experience a re-rating, which, combined with strong earnings, enhances its overall value.

Singh underscored the broader importance of SEBI's ruling for India. "SEBI's clean chit is vital for India because the country's high cost of capital significantly impacts its development trajectory. When confidence in a business deteriorates, the cost of capital increases," he concluded.