Bilateral agreement with US SEC may spur Sebi to act in alleged Adani fraud case
Indian equity markets regulator could find itself probing the latest Adani case if its U.S. counterpart invokes the inter-regulatory MoU
- Nov 21, 2024,
- Updated Nov 21, 2024 3:59 PM IST
The Securities and Exchange Board of India will consider stepping in the matter of a US federal court's indictment of Gautam Adani and some other Adani Group officials for their alleged roles in a fraud scheme against US investors involving false statements and concealment of alleged bribery in state solar power projects only if cooperation is invoked under the inter-regulatory bilateral memorandum of understanding with the US Securities and Exchange Commission, a senior SEBI official told Informist on the sidelines of an event in Mumbai today.
The US SEC said in a press release Wednesday that it had charged Gautam Adani and Sagar Adani, in their capacity as officials of Adani Green Energy Ltd, "for conduct arising out of a massive bribery scheme". Given the charges, SEBI will soon decide if its intervention is required under the inter-regulatory cooperation pact with the SEC, the official indicated.
According to the SEC, "the bribery scheme was orchestrated to enable the two renewable energy companies to capitalize on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government."
During the alleged scheme, "Adani Green raised more than $175 million from U.S. investors and Azure Power’s stock was traded on the New York Stock Exchange," the SEC said in a press release. The US market regulator has also charged an executive of Azure Power Global Ltd, Cyril Cabanes, for the same conduct arising out of the alleged bribery.
The Securities and Exchange Board of India will consider stepping in the matter of a US federal court's indictment of Gautam Adani and some other Adani Group officials for their alleged roles in a fraud scheme against US investors involving false statements and concealment of alleged bribery in state solar power projects only if cooperation is invoked under the inter-regulatory bilateral memorandum of understanding with the US Securities and Exchange Commission, a senior SEBI official told Informist on the sidelines of an event in Mumbai today.
The US SEC said in a press release Wednesday that it had charged Gautam Adani and Sagar Adani, in their capacity as officials of Adani Green Energy Ltd, "for conduct arising out of a massive bribery scheme". Given the charges, SEBI will soon decide if its intervention is required under the inter-regulatory cooperation pact with the SEC, the official indicated.
According to the SEC, "the bribery scheme was orchestrated to enable the two renewable energy companies to capitalize on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government."
During the alleged scheme, "Adani Green raised more than $175 million from U.S. investors and Azure Power’s stock was traded on the New York Stock Exchange," the SEC said in a press release. The US market regulator has also charged an executive of Azure Power Global Ltd, Cyril Cabanes, for the same conduct arising out of the alleged bribery.