On Monday, Adani Group chairman Gautam Adani and 18 entities paid Rs 1.48 crore to settle the MPS case in New Delhi, prompting SEBI to dismiss the proceedings.
The complaint was lodged in June and July 2020, and an investigation was launched on 23 October 2020. SEBI issued a show‑cause notice on 27 September 2024, followed by a supplementary notice on 3 March 2025. The notices alleged violations of the Securities Contracts (Regulation) Rules, the former Listing Agreement and the Listing Obligations and Disclosure Requirements (LODR). The investigation spanned nearly five years before the settlement.
The alleged breaches involved the minimum public shareholding (MPS) thresholds that listed companies must maintain. SEBI cited that the companies failed to meet the 25% MPS requirement set for large‑cap firms. The regulator’s scrutiny hinged on the companies’ disclosures in their annual reports and quarterly filings.
The parties proposed to end the proceedings without admitting or denying the underlying facts. They paid a settlement of Rs 1.48 crore, after which SEBI directed that all proceedings arising from the show‑cause notices be disposed of. The order effectively closed the case and cleared the companies of the alleged violations.
A small investor in Adani Ports told reporters he felt relief after the decision, saying the uncertainty over his shares had been a source of stress. SEBI has formally closed the case, but will keep monitoring the companies’ compliance with MPS requirements going forward.