Questions raised on key SEBI official’s family relationship with Gautam Adani

Amid demands by Opposition parties for a probe by Securities And Exchange Board of India (SEBI) against Adani Group on allegations of ‘stock manipulation and accounting malpractices’ levelled by US- based short seller Hindenburg Research, questions are being raised about a key SEBI official’s relationship with the chairman of the company.

In a tweet on Friday, Trinamool Congress (TMC) leader Mahua Moitra pointed out that lawyer Cyril Shroff, who serves on SEBI’s Committee on Corporate Governance & Insider Trading is related to Gautam Adani. Shroff’s daughter Paridhi is married to Adani’s son Karan. Moitra said that in case SEBI is investigating the matter, Shroff should step aside.

“Greatest respect for ace lawyer Cyril Shroff but his daughter is married to Gautam Adani’s son. Shroff serves on SEBI’s Committee on Corporate Governance & Insider Trading. If at all @SEBI_India is examining Adani’s issue, Shroff should recuse himself. Perceptions are Reality,” TMC MP Mahua tweeted.

Karan and Paridhi tied the knot in an extravagant wedding ceremony in Goa in 2013.

Meanwhile, in another blow to the embattled Adani Group, the S&P Dow Jones Indices has announced to remove Adani Enterprises from its sustainability indices before January 7.

“Adani Enterprises will be removed from the Dow Jones Sustainability Indices following a media stakeholder analysis triggered by allegations of stock manipulation and accounting fraud,” the S&P Dow Jones Indices said in a brief statement.

This is the latest in setbacks to the Adani Group triggered by a damning report published by a US-based activist finance research company on January 24.

In its report, Hindenburg Research, a short-seller, accused the Adani Group of “pulling the largest con in corporate history”.

The Dow Jones Sustainability Indices serve as benchmarks for investors who “integrate sustainability considerations into their portfolios,” according to the S&P Global website.

The indices are designed to serve as an “effective engagement platform for investors who wish to encourage companies to improve their corporate sustainability practices.”