Tag: SEBI

Categories
Beyond

SEBI clears Vinod Adani in shareholding case

The Securities and Exchange Board of India (SEBI) has issued two separate orders involving the Adani Group, bringing different outcomes to a long-running investigation into the group’s shareholding structure.

In one order dated September 28, SEBI said allegations that Vinod Adani controlled investments made by two offshore funds in four Adani Group companies were not established. In a separate settlement order issued the same day, Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone and Adani Energy Solutions, along with 14 directors including Gautam Adani, settled proceedings relating to alleged minimum public shareholding (MPS) violations by paying ₹1.48 crore.

The investigation dates back to complaints received by SEBI in June and July 2020 concerning the public shareholding of four Adani companies — Adani Enterprises, Adani Power, Adani Ports and Adani Transmission, now known as Adani Energy Solutions. SEBI began a formal investigation in October 2020.

The regulator subsequently issued a show-cause notice in September 2024, followed by a supplementary notice in March 2025. The case concerned whether the companies had complied with the prescribed 25% minimum public shareholding requirement and whether certain holdings reported as public shareholding should instead have been treated as promoter-group holdings.

At the centre of the separate proceedings against Vinod Adani were two foreign portfolio investors — Emerging India Focus Funds (EIFF) and EM Resurgent Fund (EMR). SEBI examined whether Vinod Adani exercised effective control over their investment decisions in the four Adani companies.

The regulator also examined his business and financial relationships with Nasser Ali Shaban Ahli and Chang Chung-Ling, as well as an investment-advisory arrangement involving Excel, an entity controlled by Vinod Adani, and GMAML, which took investment decisions for the funds.

SEBI said the evidence did not establish that Vinod Adani had a legal or contractual right to determine how the funds invested. It also found no sufficient evidence that he participated in investment decisions concerning the Adani Group companies.

The regulator noted that the advisory arrangement provided for non-binding advice. It also said that business or financial relationships with Ahli and Chang Chung-Ling, by themselves, were insufficient to establish control over the investment decisions.

On that basis, SEBI concluded that the allegation of Vinod Adani exercising effective control over the offshore funds was not established. The related MPS allegation and the connected allegation under the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations therefore did not survive.

SEBI did, however, impose ₹20 lakh penalties each on Ahli and Chang Chung-Ling for failing to provide correct and complete information during the investigation. The charge against Tejal Ramanlal Desai was not sustained.

The separate settlement proceeding produced a different outcome for the four Adani companies and their directors.

Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone and Adani Energy Solutions, along with 14 directors, paid a combined ₹1.48 crore to settle the proceedings. Each of the four company-and-director groups paid ₹37.05 lakh jointly and severally. Gautam Adani and Rajesh Adani were among the individuals covered by the settlement.

The settlement does not amount to an admission or denial of the facts or conclusions of law contained in SEBI’s notices. The order also does not require the companies to make corrective shareholding disclosures or record a regulatory finding that the alleged MPS violations were committed.

SEBI’s latest orders therefore mark two distinct regulatory outcomes from the broader shareholding investigation. The adjudication against Vinod Adani ended with the regulator finding that the alleged control over the offshore investments could not be established. The proceedings involving the four listed companies and their directors were closed through settlement.

The four companies covered by the proceedings were Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone and Adani Transmission, which has since been renamed Adani Energy Solutions.

The developments form part of wider regulatory scrutiny of Adani Group’s offshore investors and shareholding arrangements. SEBI’s records show both the final order concerning the alleged MPS violation and the separate settlement order were issued on September 28, 2026.

The latest orders thus close the specific proceedings covered by them, while separate regulatory matters concerning the Adani Group and offshore investors remain subject to their respective processes. Reuters reported that SEBI continues to examine other issues involving offshore investors and alleged rule circumvention and market activity.

 

Categories
Beyond

Adani firms settle SEBI cases for ₹1.51 cr

Five Adani Group companies have settled regulatory proceedings with the Securities and Exchange Board of India (SEBI) by paying a combined ₹1.51 crore. The cases were linked to disclosure and audit-related issues examined by the regulator after allegations raised in the 2023 Hindenburg Research report.

The companies involved are Adani Enterprises, Adani Green Energy, Adani Total Gas, AWL Agri Business and Adani Energy Solutions. AWL Agri Business was formerly known as Adani Wilmar, while Adani Energy Solutions was earlier called Adani Transmission.

The settlement order was passed by SEBI adjudicating officer Jai Sebastian on September 22. The proceedings were closed after the companies paid the agreed settlement amounts. Importantly, the settlement was made without the companies admitting or denying the findings of fact or conclusions of law.

Adani Enterprises paid the largest amount at ₹76.05 lakh. Adani Green Energy paid ₹45.50 lakh, while Adani Total Gas, AWL Agri Business and Adani Energy Solutions paid ₹9.75 lakh each.

The proceedings followed a SEBI examination into allegations and corporate governance concerns highlighted in the Hindenburg report. The regulator examined possible violations involving related-party transactions, disclosure requirements and audit reports.

One of the main issues involving Adani Enterprises concerned the alleged non-disclosure of certain related-party transactions in its annual report for the financial year 2012-13. SEBI’s notice referred to transactions involving Adani Estates, a subsidiary of Adani Enterprises, and Vakoder Investment.

The regulator also raised questions about audit and limited review reports submitted by several Adani companies. Some of these reports were allegedly signed by audit firms that did not have valid peer review certificates at the time.

The issues covered different periods between 2015 and 2021 and involved companies including Adani Enterprises, Adani Green Energy, Adani Total Gas, AWL Agri Business and Adani Energy Solutions.

SEBI had issued show-cause notices to the companies in February 2024. During the proceedings, the companies opted for settlement under the regulator’s settlement framework rather than continuing with the adjudication process.

Settlement terms were revised and proposed in May 2026. SEBI’s High Powered Advisory Committee recommended the payments, which were subsequently accepted by the regulator’s panel of whole-time members in August.

The companies informed SEBI on September 5 that the settlement amounts had been paid. With the regulator confirming receipt of the money, the adjudication proceedings were formally disposed of.

The latest development is significant because the cases were connected to SEBI’s broader examination of allegations raised in the Hindenburg report, which triggered intense scrutiny of the Adani Group and its listed companies in early 2023.

Hindenburg Research had accused the conglomerate of stock manipulation and improper use of offshore entities, allegations that the Adani Group has denied. The short-seller’s report led to a sharp fall in Adani Group shares and wiped out a large amount of market value at the time.

The current settlements, however, relate specifically to disclosure and audit-compliance issues examined by SEBI. The settlement itself does not amount to an admission of wrongdoing by the companies. Reuters reported that SEBI’s broader investigations into other allegations have not all been resolved by this settlement.

The distinction is important for investors. A regulatory settlement closes the specific adjudication proceedings covered by the order, but it does not necessarily mean every issue associated with the Hindenburg report has been settled.

SEBI’s order also leaves room for further action in certain circumstances. The regulator can restore or initiate proceedings if information provided during the settlement process is later found to be untrue, if the companies breach their undertakings or waivers, or if a discrepancy is found in the settlement process.

The development is likely to keep Adani Group stocks in focus in the market. The five companies involved include some of the group’s major listed businesses across infrastructure, energy, gas and renewable power.

The settlement also comes after other regulatory developments involving the group. Earlier in September, Adani Ports managing director Karan Adani and CFO B Ravi separately settled SEBI proceedings linked to transactions involving PMC Projects, paying ₹13.65 lakh each.

For investors, the immediate focus will be on whether the latest settlement reduces regulatory uncertainty around the companies and how the market interprets the closure of these specific cases.

The ₹1.51-crore settlement is relatively small compared with the size of the Adani Group’s listed businesses. Its larger significance lies in the fact that it formally closes five SEBI adjudication proceedings arising from the regulator’s examination of issues highlighted after the Hindenburg report, while leaving the distinction between these settled matters and any other regulatory proceedings intact.

 

Categories
Beyond

SEBI, RBI test tokenised corporate bonds in India

India has taken another step towards bringing blockchain technology into its financial markets with the launch of Demat 2.0, a pilot project by the Securities and Exchange Board of India (SEBI) to test tokenised corporate bonds.

The initiative, launched jointly with the Reserve Bank of India (RBI), aims to change how corporate bonds are issued, held, transferred and settled. Instead of relying entirely on conventional electronic records, the pilot uses Distributed Ledger Technology (DLT) to record ownership of bonds digitally. (sebi.gov.in)

The announcement was made by RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey at the Global Fintech Fest in Mumbai. The project is being positioned as the next stage in India’s dematerialisation journey, building on the original demat system that changed the way investors held securities. (indianexpress.com)

Under the new system, a corporate bond is represented as a digital token on a distributed ledger. The ledger is maintained by regulated market infrastructure institutions, while ownership continues to remain within the regulated securities framework. This is different from cryptocurrencies, which operate outside India’s conventional securities market structure.

The pilot has already seen three corporate bond issuances worth a combined ₹1,025 crore from REC Ltd, Larsen & Toubro and IIFL. The L&T issue alone was worth ₹500 crore. The initial transactions are aimed at institutional investors as regulators test whether the technology can work smoothly at different stages of the bond lifecycle. (financialexpress.com)

One of the biggest changes under Demat 2.0 is the way transactions can be settled. The tokenised bond system is connected to the RBI’s wholesale Central Bank Digital Currency (CBDC) through the central bank’s Unified Market Interface (UMI).

This allows the bond and the payment to move together in what is known as atomic settlement or delivery-versus-payment. In simple terms, the buyer’s money and the seller’s security can be exchanged at the same time, reducing the possibility that one side of the transaction is completed while the other remains pending. (fortuneindia.com)

That could make the corporate bond market more efficient. Traditional transactions involve several stages of reconciliation between securities and cash records. A tokenised system can bring those records together, potentially reducing settlement time, operational work and counterparty risk.

The technology can also automate certain activities after a bond has been issued. Interest payments, redemptions and other asset-servicing functions can be handled through smart contracts, reducing the need for manual intervention. (financialexpress.com)

Importantly, tokenisation does not change the basic rights of investors. SEBI has said investors in tokenised corporate bonds will have the same rights as investors holding conventional bonds. The pilot is testing the technology and market infrastructure, rather than creating a separate class of securities with different investor protections. (livemint.com)

The pilot is initially focused on corporate bonds and institutional participants. Retail investors are not yet the main target, but regulators have indicated that wider participation could be considered as the system develops.

That could eventually be significant for India’s bond market. Tokenisation has the potential to make certain financial assets easier to divide and transfer, which could support fractional ownership and make high-value investments more accessible. However, moving from a controlled pilot to a broad retail system would require further testing, regulatory clarity and safeguards.

The project also involves several major financial-market institutions, including NSDL, CDSL, NSE, BSE, banks and NPCI. Their participation is important because Demat 2.0 needs to work across different parts of India’s existing financial infrastructure rather than operate as a standalone blockchain platform. (indianexpress.com)

The move comes as Indian regulators increasingly experiment with digital financial infrastructure. The RBI has been expanding the use cases for its digital rupee, while SEBI has been examining how emerging technologies can improve securities-market operations.

The central bank is also exploring the possibility of tokenising other assets, including gold, as it looks at expanding the Unified Market Interface. That suggests tokenisation could eventually move beyond corporate bonds if the underlying technology proves reliable. (economictimes.indiatimes.com)

There are still challenges. A pilot cannot establish how the system will perform during periods of heavy market activity or across a much larger number of investors. Questions around custody, taxation, accounting, secondary-market trading and operational risks will also need to be addressed before tokenised securities become widely used.

SEBI’s Demat 2.0 pilot is therefore less about replacing the existing demat system immediately and more about testing what the next generation of India’s securities infrastructure could look like.

If the experiment succeeds, corporate bonds could eventually move through a system where ownership, payment and post-trade services are connected digitally. That could make India’s debt market faster, more automated and easier to monitor while giving regulators a stronger technological foundation for the future.

The initiative marks a significant shift from simply holding securities electronically to creating a more integrated digital market infrastructure. For investors, the change may not be visible immediately, but the technology being tested could eventually reshape how corporate bonds, digital securities and other financial assets are issued and settled in India.

 

Categories
Corporate

NSE IPO gets SEBI nod, listing plans gain momentum

After years of waiting, India’s largest stock exchange is finally moving closer to the stock market.

The National Stock Exchange of India (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its much-awaited initial public offering (IPO), bringing one of the country’s most closely watched listings a step closer.

The proposed IPO could raise about ₹30,000 crore through an offer for sale (OFS). At that size, NSE’s public issue could become the second-largest IPO in India, behind the proposed Jio Platforms issue.

The NSE IPO is unusual for another reason as far as investors are concerned. The exchange that has been at the centre of India’s stock market activity for decades will itself become an investment opportunity.

The proposed issue will involve existing shareholders selling their holdings rather than NSE issuing new shares. This means the proceeds will go to the selling shareholders and not to the exchange. Around 14.89 crore shares, or close to 6% of NSE’s equity, are expected to be offered.

Several institutional shareholders are expected to participate. State Bank of India is among the prominent sellers, along with a number of government-owned financial institutions and insurers. Life Insurance Corporation of India, however, is expected to retain its stake.

The approval marks an important turning point for NSE, whose plans to go public have been delayed for nearly a decade.

The exchange had first sought to launch an IPO in 2016. Its plans subsequently became entangled in regulatory proceedings linked to the co-location controversy, which raised questions over preferential access to NSE’s trading infrastructure.

Those concerns have gradually moved towards resolution. A long-running legal matter involving SEBI and NSE was recently settled, removing one of the key hurdles that had stood in the way of the exchange’s listing plans.

The timing could hardly be more significant.

NSE has grown into a critical part of India’s financial system. It operates the benchmark Nifty 50 index and has a dominant position in equity derivatives trading. The exchange also ranked among the world’s busiest derivatives markets in terms of contracts traded.

That scale has translated into strong financial performance.

For the year ended March 2026, NSE reported a consolidated profit after tax of ₹10,302 crore, while total income stood at ₹18,713 crore. Its earnings have benefited from sustained activity across India’s equity and derivatives markets.

The momentum has continued into the current financial year. NSE reported a consolidated profit after tax of ₹3,120 crore for the April-June quarter, an increase of 7% from the same period a year earlier. Revenue from operations rose 13% to ₹4,560 crore.

Those numbers are likely to be closely examined by investors as they assess the exchange’s valuation.

NSE’s proposed listing also comes at a time when India’s capital markets are drawing greater participation from retail and institutional investors. Rising demat accounts, strong derivatives activity and increasing participation in equities have helped exchanges build highly profitable businesses.

But investors will also have to consider the risks.

NSE’s revenues are closely linked to market activity, particularly trading volumes. Changes in derivatives regulations, lower trading activity or tighter market rules could affect earnings. The exchange also operates in a highly regulated environment, making regulatory developments an important factor for its future growth.

The IPO valuation will therefore be one of the biggest talking points once NSE announces its price band.

Shares of NSE have been actively traded in the unlisted market, giving investors an indication of the valuation the exchange could command when it finally enters the public market. However, the informal unlisted-market price should not be treated as the final IPO valuation, which will depend on the official offer price and investor demand.

The proposed listing could also give India’s IPO market a major boost.

With several large companies preparing to tap the primary market, NSE’s entry would be among the most high-profile events on Dalal Street. It would effectively put the operator of one of the world’s major exchanges under the same market scrutiny faced by the companies whose shares trade on its platform.

The exchange is reportedly looking at a September listing, although the final timetable, price band and issue details will be confirmed through official announcements.

The irony will not be lost on Dalal Street. Soon, investors who have spent years trading on NSE could find themselves trading NSE itself.

 

Categories
Technology

Jio Platforms gets SEBI nod for India’s biggest IPO

Jio Platforms Ltd, the digital and telecom business of Reliance Industries, has received the Securities and Exchange Board of India’s (SEBI) final observations for its proposed initial public offering (IPO), clearing a major regulatory hurdle for what could become India’s largest-ever public issue.

The company is looking to raise around ₹37,700 crore, or nearly $4 billion, through the IPO. If launched at the proposed size, the issue would comfortably overtake the current record held by Hyundai Motor India, which raised ₹27,859 crore through its 2024 listing. The proposed Jio IPO is therefore set to become one of the biggest events in India’s primary market.

Jio Platforms had submitted its draft red herring prospectus (DRHP) to SEBI in June, beginning the formal process for its much-awaited stock market debut. The regulator’s final observations on August 28 allow the company to move ahead with preparations for the public issue, subject to the remaining regulatory and procedural requirements.

The proposed IPO will consist of a fresh issue of up to 27 crore equity shares. These shares are expected to represent about 2.9% of Jio Platforms’ post-issue equity capital. Unlike an offer-for-sale, where existing shareholders sell their shares, the Jio offering is structured as a primary issue, meaning the money raised will go to the company.

A major portion of the IPO proceeds is expected to be used to repay or prepay outstanding borrowings of Reliance Jio Infocomm Ltd, Jio Platforms’ key subsidiary. The company has also earmarked funds for general corporate purposes.

The planned use of funds makes debt reduction an important part of the Jio IPO story. The proposed issue could strengthen the financial position of the telecom business while giving Jio Platforms a separately listed identity in the public market.

The IPO is also significant because it will give investors a direct opportunity to participate in Jio’s rapidly expanding digital ecosystem. Over the years, Jio has moved beyond mobile connectivity to build businesses spanning digital services, broadband, enterprise solutions, cloud services and emerging technologies such as artificial intelligence. Its scale has made the public offering one of the most closely watched IPOs in India.

Jio Platforms has already attracted several major global investors. Meta invested about ₹43,574 crore in 2020 for a 9.99% stake, while Google invested around ₹33,737 crore for a 7.73% holding. A group of global financial and strategic investors also invested heavily in the company, including Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, the Public Investment Fund of Saudi Arabia, Intel Capital and Qualcomm Ventures.

Reliance Industries currently owns about 66.43% of Jio Platforms. Meta and Google together hold around 17.71%, with the balance owned by other investors. The IPO will consequently bring a portion of the company’s equity into public ownership while creating a market-determined valuation for one of India’s most prominent digital businesses.

The proposed Jio Platforms valuation has attracted considerable attention. Reports have placed the potential valuation at around $137 billion, although the final valuation will depend on the eventual issue price and market conditions. The price band has not yet been announced, and investors will have to wait for further IPO-related disclosures before assessing the offer more precisely.

The financial performance of Jio Platforms has also strengthened the case for its public listing. In the first quarter of FY27, the company reported revenue of ₹45,961 crore, a 12% year-on-year increase. Segment EBITDA rose 15.1% to ₹20,865 crore, while profit increased 9.2% to ₹7,764 crore. Average revenue per user, or ARPU, also improved to ₹215.6, reflecting continued growth in its telecom business.

The timing of the Jio IPO comes as India’s primary market is witnessing renewed activity. Companies have returned to the IPO market in significant numbers, supported by domestic liquidity and investor appetite for new listings. Data cited in recent reports showed that 60 IPOs raised ₹72,165 crore between January and August 2026, with July and August accounting for a substantial share of the fundraising.

The Jio listing could further lift the profile of India’s IPO market. A successful issue would not only set a new fundraising record but could also provide investors with a clearer market valuation of Reliance’s digital and telecom operations.

The Reliance group’s connection with the public market is another reason the issue is being closely watched. The Jio Platforms IPO is expected to be the first IPO from the Reliance group since 2008 and marks the first public offering of a consumer-focused business within the conglomerate.

The company’s listing could also influence how investors value India’s large technology and telecom businesses. With more than 533 million subscribers, Jio has developed into one of the world’s largest mobile operators while expanding into a broader digital-services platform.

SEBI’s approval marks the biggest step yet towards Jio Platforms becoming a publicly traded company. If the proposed ₹37,700-crore issue proceeds as planned, Jio will rewrite India’s IPO record book and give the country’s stock market one of its most closely followed new listings in years.

 

Categories
Counterpoint

Independence Day Special: From licence raj to global scale

On Independence Day, we usually measure India’s progress in roads, dams, harvests, technology and living standards. We should also measure what happened to the Indian company.

The transformation is extraordinary. India entered freedom with private enterprise operating alongside a powerful colonial commercial legacy. Within a few years, the new republic chose a heavily regulated model of industrial development. The Industries (Development and Regulation) Act of 1951 made government approval central to industrial expansion, and successive policies strengthened what eventually became known as the Licence Raj.

An entrepreneur with capital, customers and a good idea could still find that the most important question was whether New Delhi would permit him to produce more.

Then came 1991.

The New Industrial Policy of July 24, 1991 used unusually blunt language for an official document. It promised to “unshackle” industry from unnecessary bureaucratic control and abolished industrial licensing for all but a short list of sectors.

That change did something more profound than reduce paperwork.

It began shifting economic power from permission to competition.

The results can be seen on a stock-market screen. When the Sensex began on 2 January 1986, it stood at 549.43. On 30 December 2025, it closed at 84,675.08 — more than 150 times higher in nominal terms.

But the more revealing number is four. According to the BSE’s fascinating Sensex@40 study, only four companies have remained continuously in the 30-stock index since its inception: Hindustan Unilever, Larsen & Toubro, ITC and Reliance Industries.

Think about what that means.

India did not simply make its old corporate giants bigger.

It repeatedly created new giants.

Industries once considered the commanding heights lost their dominance. Information technology arrived. Private banking exploded. Telecom transformed itself. Pharmaceuticals went global. Consumer businesses multiplied. New financial companies, technology platforms, airlines, infrastructure developers and renewable-energy businesses emerged.

26 places in India’s best-known stock-market index eventually changed hands. That is not corporate instability. That is corporate Darwinism!

A healthy capitalist system should not guarantee immortality to yesterday’s champions. It should make room for tomorrow’s.

The machinery around companies changed almost as dramatically as the companies themselves. SEBI gained statutory powers in 1992. Screen-based trading replaced much of the noise and opacity of physical trading floors. The Depositories Act of 1996 helped turn the paper share certificate — with its transfer forms, signatures, delays and risk of loss or forgery — into an electronic record.

By March 2026, India had 22.5 crore demat accounts. Household participation has moved equally fast. SEBI’s latest annual report counts 10.45 crore active systematic investment plan accounts. The mutual-fund industry had 6.1 crore unique investors, with Tier-III cities accounting for an astonishing 55% of that investor base.

The Indian stock market, once the preserve of brokers and wealthy urban families, increasingly belongs to people investing a few thousand rupees a month from towns across the country.

Capital itself has become more Indian. Domestic institutional investors held a record 17% of Indian equities by March 2026, according to SEBI, while foreign portfolio ownership had fallen to a 15-year low of 15.8%. India’s aggregate stock-market capitalisation stood at ₹411.6 lakh crore, making it the world’s fifth-largest equity market.

Companies raised a record ₹2.3 lakh crore through public equity issues, including rights issues, in 2025-26. And the Ministry of Corporate Affairs now counts 21,55,827 active companies and another 5,13,790 active LLPs. In July 2026 alone, 26,407 companies were incorporated.

Governance changed too. No serious observer would claim that India has solved promoter dominance, conflicts of interest, boardroom failures or the protection of minority shareholders. Clearly, corporate governance remains unfinished work.

But compare the institutional architecture. Modern India has independent directors, audit committees, continuous disclosure requirements, takeover regulations, related-party transaction rules, electronic market surveillance and statutory securities regulation.

Even corporate failure has been institutionalised. Before the Insolvency and Bankruptcy Code, a failed business could remain trapped for years while creditors watched assets deteriorate. A decade after the IBC’s enactment in 2016, 8,987 corporate insolvency cases had been admitted and 7,102 closed by March 2026. Resolution plans in 1,419 cases had generated more than ₹4 lakh crore for creditors. Another 30,000-plus cases involving obligations estimated at nearly ₹14 lakh crore were settled before formal admission.

The system remains slower than it should be. Yet bankruptcy finally carries a consequence that Indian capitalism once struggled to impose: capital can change hands when its owner fails to use it well.

Technology has rewritten the corporate map as well. A country once associated with textile mills, steel plants and trading houses now exports software, designs pharmaceuticals, runs global capability centres, manufactures smartphones and finances vast renewable-energy projects. Mobile-phone production alone rose from roughly ₹18,000 crore in 2014-15 to ₹6.27 lakh crore in 2025-26 — a 33-fold increase. Mobile phones have become India’s single largest export item.

Yet one transformation fascinates me more than most because it involves the hardest form of enterprise: building things in the physical world.

Software can scale at extraordinary speed. Infrastructure cannot. A port needs land, dredging, cranes, rail links and years of execution. A power plant must actually produce electricity. Transmission lines must cross hundreds of kilometres. Airports must move passengers safely, hour after hour.

For my money, Gautam Adani has become India’s finest builder of large-scale private infrastructure in the post-liberalisation era.

His story also captures what changed in Indian capitalism. Adani did not begin with a century-old industrial inheritance. His business started in 1988, initially in commodity trading. What followed was a move into ports, logistics, power, transmission, renewable energy, airports and other hard infrastructure.

The scale of his expansion drive now deserves attention even from those who have little interest in corporate personalities.

In 2025-26, his ports and logistics company, Adani Ports and Special Economic Zone, handled 500.8 million tonnes of cargo and accounted for 27.1% of India’s port volumes. Its container share reached 45.5%. Its integrated network now stretches from ports into rail, warehousing, trucking, marine services and logistics parks.

His airport management arm, Adani Airport Holdings, handled 96.4 million passengers in FY26 — roughly a quarter of India’s air traffic — while facilitating 33% of the country’s air cargo. His renewables company, Adani Green Energy, operates 19.3 GW of renewable-energy capacity after adding more than 5 GW in a single year, while also building the world’s largest solar plant in Khavda, Gujarat. Adani Energy Solutions operates 27,949 circuit kilometres of transmission lines across 16 states. Adani Power, India’s largest private thermal-power producer, operates 18,150 MW.

These are jaw-dropping numbers for a country like India in a jaw-dropping variety of critical sectors. Ports. Airports. Solar. Wind. Transmission. Thermal. Logistics. Rail. Roads. Defence. Cement. Gautam Adani is unstoppable. Just like the India of today.

Infrastructure is unusually resistant to rhetoric: a port either moves cargo or it does not; a transmission line either carries power or it does not; an airport either handles passengers or it does not.

Measured that way, Gautam Adani’s achievement ranks among the greatest enterprise-building stories of not just independent India but of the whole wide world.

The larger story, however, belongs to India rather than to any one businessman. The Tatas, Birlas and other industrial families helped build early Indian industry. Public-sector enterprises supplied steel, energy, banking and heavy industrial capacity when private capital could not. Liberalisation unleashed Reliance, Infosys, HDFC, Bharti and a new generation of businesses. Today, startups, manufacturers, financiers and infrastructure developers compete for capital in markets unimaginable to the entrepreneur of 1947. For more analysis on India Inc, business trends and economic transformation, explore our CounterPoint section.

Every era produced its champions.

Every era also displaced some of the previous ones.

That may be the most encouraging fact of all.

India Inc’s achievement is not that particular companies became enormous. It is that India gradually constructed a system capable of creating new companies, financing them, regulating them, disciplining failure and allowing challengers to replace incumbents.

From industrial licences to competitive markets. From paper certificates to 22.5 crore demat accounts. From a few dominant business houses to more than 21 lakh active companies. From domestic capital scarcity to a ₹411.6-lakh-crore stock market. From a commodity trader founded in 1988 to an infrastructure group moving one-quarter of India’s port cargo and airport traffic.

Political independence arrived at midnight on August 15, 1947.

Economic freedom took much longer.

India Inc’s 79-year journey shows just how much can happen once enterprise is progressively allowed to breathe.

 

Categories
Beyond

SEBI proposes wider FPI access

The Securities and Exchange Board of India (SEBI) has proposed widening the participation of foreign portfolio investors (FPIs) in India’s exchange-traded commodity derivatives market, a move aimed at bringing more institutional money into the segment and strengthening its liquidity and price discovery.

The markets regulator issued a consultation paper on August 11, seeking views on allowing FPIs to participate in a wider range of non-agricultural commodity derivatives, including contracts that are physically settled. The consultation is open for public comments until September 1, 2026.

At present, FPIs are permitted to trade only cash-settled non-agricultural commodity derivatives and indices comprising such commodities. SEBI had first allowed FPI participation in India’s exchange-traded commodity derivatives (ETCDs) in 2022.

The regulator now wants to expand that framework. Under the proposal, FPIs would be allowed to trade non-agricultural commodity derivatives that involve physical settlement, subject to safeguards. The proposal also seeks to permit FPI participation in non-agricultural index derivatives regardless of whether the underlying commodities are cash-settled or physically settled.

The move covers important commodities such as crude oil, natural gas, gold, silver and base metals. These commodities are actively traded in international markets and their prices are closely linked to global benchmarks.

SEBI believes greater participation by overseas investors could make India’s commodity derivatives market deeper and more internationally connected. A broader participant base could mean more buying and selling activity, potentially improving liquidity and making it easier for investors to enter and exit positions.

The regulator also expects the proposal to improve price discovery. Commodity prices are influenced by global demand, supply, geopolitical developments and currency movements. Greater participation from international investors could help Indian commodity contracts respond more efficiently to these factors.

SEBI said foreign participation has already produced visible results in parts of the market. Liquidity in crude oil and natural gas options has increased notably since FPIs were allowed to participate. Open interest has also risen, with FPIs accounting for a meaningful and growing share of activity.

The latest proposal is therefore aimed at extending that experience to a broader set of commodity derivatives.

There is, however, a practical complication with physically settled contracts. Unlike cash-settled derivatives, these contracts can result in the delivery or receipt of the underlying commodity when they approach expiry.

SEBI noted that FPIs may not be in a position to undertake physical delivery because they generally do not have a permanent establishment in India. The regulator has also pointed out that buying or selling commodities in India could require GST registration.

To address the issue, SEBI has proposed a two-tier safeguard mechanism.

Under the first layer, FPIs would have to square off or roll over their positions before the tender or staggered delivery period begins. The compulsory exit requirement would start three days before the expiry of the relevant contract.

If an FPI fails to close or roll over its position, the second layer would come into play. The open position would automatically be transferred to a designated trading member or trading-cum-clearing member.

The transfer would take place at the exchange’s closing price or daily settlement price. Once the position is transferred, the FPI would no longer have any obligation or exposure connected with the position, including responsibilities related to physical delivery.

SEBI has also proposed a financial safeguard for trading members that take over such positions. FPIs could be required to pay a pre-agreed “Proprietary Risk Absorption Charge” if their positions are involuntarily transferred.

The charge is intended to compensate trading members for the additional proprietary risk, margin requirements and position-limit burden they may face after taking over an FPI position. It would be separate from any service fee agreed between the parties.

Trading members would also be given up to two trading days to bring transferred positions back within prescribed position limits if the transfer temporarily pushes their proprietary accounts beyond those limits.

SEBI’s Commodity Derivatives Advisory Committee has supported the proposed changes, adding weight to the regulator’s push for wider foreign participation.

For the Indian commodity market, the proposal could represent another step towards making domestic derivatives contracts more attractive to global investors. Greater FPI participation could potentially increase trading volumes, strengthen market depth and help Indian commodity prices track international developments more efficiently.

For foreign investors, the proposed changes would broaden access to India’s commodity derivatives market without requiring them to take on direct physical delivery obligations. For domestic exchanges and trading members, increased participation could create opportunities for higher liquidity and wider institutional activity.

The proposal is still at the consultation stage and is not yet a final regulatory change. Market participants now have until September 1 to submit their views to SEBI. The regulator will consider the feedback before deciding on the final framework.

Categories
Beyond

Govt puts 6.5% LIC stake up for sale

The Indian government has launched a major stake sale in Life Insurance Corporation of India (LIC), offering to sell up to 6.5% of its holding through an Offer for Sale (OFS). The move could bring around ₹31,000 crore into the government’s disinvestment kitty while helping LIC meet the stock market regulator’s minimum public shareholding requirement.

The LIC OFS opened for non-retail investors on Tuesday, August 4, while retail investors will be able to participate on Wednesday, August 5. The government has fixed the floor price at ₹382 per share. At that price, the full 6.5% stake on offer is valued at about ₹31,410 crore.

The sale consists of a base offer of 2%, with the government retaining the option to sell an additional 4.5% if demand is strong. If the entire offer is exercised, the government’s sale would take LIC’s public shareholding from the current 3.5% to 10%.

That increase is important because LIC has to comply with the minimum public shareholding norms set by the Securities and Exchange Board of India (SEBI). The regulator has given the insurer until May 16, 2027, to reach the 10% public shareholding threshold.

The latest LIC stake sale is therefore not simply a fund-raising exercise. It is also a move to bring the state-owned insurer closer to its regulatory requirement while widening the number of shares available to public investors.

The LIC OFS comes more than four years after the insurer’s landmark stock market debut in May 2022. It is the first time the government is selling part of its LIC holding since the company was listed on the stock exchanges.

The pricing of the offer has attracted considerable attention. The ₹382 floor price represents a sizeable discount to LIC’s market price before the sale. LIC shares had closed at ₹428.50 on the NSE on Monday, putting the OFS floor price around 11% below the previous closing level.

The discounted price was aimed at making the offer attractive to investors, but it also put pressure on LIC shares when trading began on Tuesday. The stock fell sharply in early trade as investors reacted to the discounted government offer and the prospect of additional shares entering the market.

For the government, the LIC disinvestment is significant because it can provide a sizeable boost to its annual asset-sale programme. The Centre has set a target of raising ₹80,000 crore through disinvestment during the 2026-27 financial year.

Before the LIC transaction, the government had already raised around ₹21,200 crore through stake sales in companies including NHPC, Coal India and Indian Railway Finance Corporation. A full LIC OFS could therefore make a substantial contribution towards closing the gap between the amount already raised and the government’s annual disinvestment target.

The transaction is also important for LIC’s evolution as a listed company. The insurer remains one of India‘s largest financial institutions, with a vast policyholder base and a dominant position in the life insurance market.

LIC’s listing in 2022 was one of India’s biggest initial public offerings. However, the stock faced pressure after its market debut and spent a considerable period trading below its issue price. Investors have since closely tracked the insurer’s profitability, market share, product mix and ability to compete with private-sector insurance companies.

The increase in public shareholding could improve the stock’s liquidity over time by bringing more shares into the hands of institutional and retail investors. It could also broaden market participation in LIC, although the immediate impact of a large OFS can be challenging for the share price.

For retail investors, the government’s offer provides an opportunity to buy LIC shares at the specified floor price, subject to the terms and allocation rules of the OFS. However, investors will also need to consider the possibility of continued price volatility around the stake sale.

Large government stake sales often create short-term pressure because of the additional supply of shares. In LIC’s case, the discount offered through the OFS makes the difference between the market price and the government’s floor price particularly important for investors.

The outcome of the LIC OFS will be closely watched by both investors and policymakers. If the government exercises the full 6.5% offer, it could raise roughly ₹31,000 crore and lift LIC’s public shareholding to the 10% level well before the May 2027 deadline.

The government’s decision also signals that LIC will gradually move towards a broader ownership structure, even as the Centre retains majority control. The sale combines two objectives: raising resources through disinvestment and bringing LIC closer to the public ownership norms applicable to listed companies.

 

Categories
1 Minute-Read

SC upholds SEBI action against Kotak AMC

The Supreme Court has upheld SEBI’s action against Kotak Mahindra Asset Management Company (AMC) and its senior officials in the Essel Group debt investment case, affirming the market regulator’s authority to enforce mutual fund rules.

The court dismissed appeals filed by Kotak AMC, Managing Director Nilesh Shah and former CEO Harsha Upadhyaya against SEBI’s order. The regulator had found that the fund house entered into prohibited arrangements while investing in Essel Group debt securities in 2019.

The judgment reinforces transparency, fair treatment of investors and strict compliance with mutual fund regulations.

Categories
Corporate

SEBI bars 221 entities in ₹144-cr stock scam

The Securities and Exchange Board of India (SEBI) has barred 221 entities from accessing the securities market after uncovering an alleged ₹144-crore pump-and-dump scam involving five listed companies. The action marks one of the regulator’s biggest crackdowns on organised stock price manipulation in recent years.

According to SEBI, the accused artificially inflated the prices of select low-liquidity stocks through coordinated trading before offloading their holdings at elevated prices. Retail investors were allegedly lured into buying these shares after misleading messages and promotional campaigns created the impression of strong investment opportunities.

The investigation revealed a well-planned network that used digital communication platforms, including WhatsApp groups, to coordinate trading activity and spread stock recommendations. SEBI also relied on financial records, call details, bank transactions and even food delivery records to establish links among the individuals involved in the operation.

The regulator found that the alleged scheme generated unlawful gains of around ₹144 crore. It has directed the accused entities to return the illegal profits while prohibiting them from buying, selling or dealing in securities until further orders.

SEBI also imposed a ₹10-crore penalty on Hanif Shekh, identified as one of the key individuals behind the alleged operation. Investigators said he played a central role in coordinating the manipulation and managing the network involved in the scheme.

The market watchdog said the case demonstrates the increasing sophistication of stock manipulation techniques and highlights its growing use of technology and digital evidence to detect financial misconduct. By analysing electronic communications and transactional data, investigators were able to reconstruct the alleged conspiracy and identify the participants.

Also Read: Disney invests ₹123 cr more in JioStar India