NEW DELHI: India’s Supreme Court on Wednesday said the Adani Group does not need to face more investigations beyond the current scrutiny of the market regulator, a major relief for the conglomerate hit hard by a US short-seller’s allegations of wrongdoing.

The Securities and Exchange Board of India (SEBI) has been probing the Adani group, led by billionaire Gautam Adani, after Hindenburg Research in January 2023 alleged improper use of tax havens and stock manipulation by the group.

The Adani Group denied those allegations, but Hindenburg’s report still chopped $150 billion off its stock market value. Though some investor confidence returned in recent months as Adani won the backing of bankers and investors, the Hindenburg saga and the regulatory scrutiny have weighed on the group’s business dealings and reputation.

The Supreme Court, which was ruling on cases brought by public interest litigants seeking a special investigation team to probe the matter, said “the facts of this case do not warrant” such a change, even though the court had the powers to transfer the investigation.

The verdict signals there will not be increased regulatory or legal risk on the Adani group beyond the current SEBI investigation.

Reflecting that view, shares of various Adani Group companies closed higher, with Adani Energy Solutions up 11.4%, Adani Total Gas surging 10%, Adani Green Energy jumping 5.8% and the flagship business Adani Enterprises rising 2.4%.

The court, which was overseeing the SEBI probe, also said there was no need for it to order any changes in the country’s disclosure rules for offshore funds. Hindenburg had alleged Adani’s offshore shareholders were used to violate certain SEBI rules, even though the company maintained it complies with all laws.

The regulator had previously informed the Supreme Court that it would take appropriate action based on the outcome of its investigations. The court on Wednesday gave SEBI three months to complete its probes.