The US Securities and Exchange Commission (SEC) has approached a federal court seeking permission to notify industrialist Gautam Adani through email in an ongoing fraud case. The move comes after the regulator failed for more than a year to formally serve legal summons through conventional channels.
Why Is the SEC Asking for Alternative Service?
According to court filings, the SEC said it made repeated attempts to serve summons to Gautam Adani with assistance from Indian authorities. However, these efforts did not succeed, delaying progress in the case. Due to the prolonged failure, the regulator has now requested approval for alternative service methods.
The SEC wants to notify Gautam Adani and his nephew, Sagar Adani, by sending legal documents via email. It has also sought permission to serve notices to their US based legal representatives, arguing this approach would ensure timely communication and allow the case to move forward.
Impact on Adani Group Stocks
Adani Group stocks saw sharp, broad based selling as investor sentiment weakened across the board. Adani Enterprises fell 10.65%, Adani Green Energy plunged 14.54%, while Adani Energy Solutions declined 12.12%, making them the worst performers of the session.
The heavy selling reflects rising regulatory concerns and valuation pressure, especially in capital intensive segments such as renewable energy, power transmission, and infrastructure where PE multiples remain elevated.
How Other Adani Stocks Performed
Large cap stocks also remained under pressure. Adani Ports & SEZ dropped 7.48%, while Adani Power slipped 5.65%, indicating that selling was not limited to just high valuation names. Cement majors showed relative resilience, with Ambuja Cements down 5.12% and ACC declining a smaller 3.42%.
Despite the sell off, trading volumes stayed strong across counters, suggesting active repositioning rather than panic exits. However, high PE ratios in green energy, gas, and utility businesses continue to keep near term investor sentiment cautious.
Key Questions Answered
What does the SEC want?
The SEC wants court approval to notify Gautam Adani and Sagar Adani via email and through their US lawyers after failing to serve summons for over a year.
Why did Adani stocks fall?
Stocks declined due to regulatory uncertainty and investor concerns over valuation and potential legal risks linked to the SEC case.
Is this a final judgment?
No. This is a procedural request related to serving legal notice. The case itself is still ongoing.
Update: Adani Family Responds in US Securities Case
Billionaire Gautam Adani and his nephew Sagar Adani have made their first legal move in a US securities fraud case, around 14 months after civil charges were filed against them by US regulators.
In a letter dated January 23 to a US court in Brooklyn, their lawyers from Sullivan & Cromwell said they are in talks with the US Securities and Exchange Commission over how official legal notices will be delivered. The case is being heard by Nicholas G. Garaufis.
The Adanis have asked the court to delay any decision while these discussions continue. However, the filing does not reveal what terms or issues are being negotiated with the SEC.
Adani Group Stocks Rebound Up to 6% After Legal Update
Shares of Adani Group companies jumped as much as 6% on Tuesday, January 27, bouncing back after a heavy fall last week that wiped out nearly Rs 1.12 lakh crore, or about 12.5 billion dollars, in market value. Investors reacted positively as signs emerged that Gautam Adani and his nephew Sagar Adani are open to discussions related to a US legal matter.
Lawyers representing them informed a US court that they are in talks with the Securities and Exchange Commission about how legal summons will be received. The court filing said both sides are working on an agreement, and the Adani legal team has asked for more time until January 30 to finalize the arrangement.
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