Shares of billionaire Gautam Adani-led Adani Group companies surged up to 10% in early trade on Friday after the regulatory body SEBI cleared the conglomerate of allegations of related party transaction violations and fraudulent practices.

Adani Total Gas advanced sharply by 10%, followed by Adani Power, which was up 7%, while Adani Green Energy shares rose by 5%, although they have now cooled down to around 3% in intraday trading. Adani Power hit a fresh 52-week high of ₹686.95 in today's trade.

Even Adani Enterprises and Adani Ports rose by 4.22% and 2.22%, respectively, in the early trading hours on the Nifty50 index. Adani's cement enterprises, ACC and Ambuja Cement, rose by 1% each.

The market regulator had initiated a probe after U.S. short seller Hindenburg Research, in its January 2023 report, accused the conglomerate of using obscure intermediaries to transfer funds within the group and bypass disclosure requirements.

In both cases, SEBI concluded that loans and transfers involving Adani firms and the private entities were genuine commercial transactions. “A plain reading of the Listing Agreement and LODR Regulations reveals that transactions between a listed company and an unrelated party are not covered within the definition of related party transactions as it existed at that time,” the orders stated.

“There is no violation of the provisions of the LODR Regulations, as the impugned transactions do not qualify as related party transactions,” the regulator said.

“After an exhaustive investigation, SEBI has reaffirmed what we have always maintained—that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group,” Adani Group chairman Gautam Adani said in a post on the social media platform X.

“We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology,” Adani said.