SEBI Rules on Adani Group Transactions: No Violations Found

Imagine a company, the Adani Group, and some smaller companies.

SEBI, the financial rules-maker, looked at some money transfers between them.

The Adani group lent money to these finance companies which in turn lent it to other companies in the Adani group.

Even though these loans looked like they were meant to hide something, SEBI said that there was no violation of the law as it was written at that time.

That's because the definition of 'related party' was narrow back then.

Now, the rules are different, meaning similar transactions could be illegal today.

The investigation, however, is still not entirely closed because of accusations of not following the shareholding rules.