📰SEC vs Adani Moves Forward | Daily India Briefing

After more than a year of legal back-and-forth, the U.S. Securities and Exchange Commission has cleared a basic but crucial hurdle in its civil fraud lawsuit against Indian billionaire Gautam Adani. Today, we explain more.

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Macro

• Goa's energy conference will carry the usual questions about Russian oil dependence. Investors are going to wonder if India can continue navigating international pressure to buy the cheapest crude possible. Cheap supplies from Iran are out of hand while Venezuelan flows have only just started to trickle in, mostly to the US.

• The RBI is adding $23.6 billion (₹2.2 trillion) of cash injections through bond purchases and selling rupees. The goal is to loosen banking liquidity that has tightened due to the RBI buying rupees to strengthen it. Banking liquidity was in a deficit right now compared to a $28.4 billion (₹2.6 trillion) surplus at the beginning of December.

Equities

• Apparel manufacturers just gained access to a $263 billion (₹24.1 trillion) textile market in the EU. Ready-made garments could increase in market share from 5 to 9 percent with the incremental export opportunity over the short-term being $4.5 billion (₹411.3 billion). KPR Mill, Welspun Living, and Kitex Garments all climbed 5+ percent.  

• Avanti Feeds rose 2.1 percent since seafood exports will climb. Preferential access to the EU includes shrimp, frozen fish, and value-added seafood products. Safeguards have also been retained to protect Indian farmers in poultry and dairy. 

• Sula Vineyards fell 3.5 percent while Kingfisher-brewer United Breweries dipped 1.2 percent on FTA news.Competitive intensity is expected to rise in the premium and luxury segment due to increased imports of Heineken, Carlberg, Budweiser, and Remy Cointreau.

Alts

• Jewelers are expecting bilateral EU trade to climb to $9.9 billion (₹910 billion), double from current amounts. This should happen in the next 3 years, helping jewelers who lost 44 percent of their export volume with 50 percent US tariffs.

• Adani and Embraer signed a deal to build aircraft in India.The pact is yet to announce what type of aircraft though this does boost regional air connectivity initiatives in the country. It’s also a new line of business for the Adani Group with a manufacturing facility soon to be announced by the conglomerate.

Policy

• Beneficiaries of the EU trade deal will likely be jewelers and apparel manufacturers. They will gain preferential access to the EU market though automakers and liquor companies have to contend with more competition. High-tech engineering will also benefit from growing collaboration. 

• The EU FTA also gives European financial firms easier access to Indian markets.Part of this is the ECB and RBI working closer but European banks can now also clear trades through India’s sovereign bond clearing house. The issue was a 2 year standing dispute between both central banks.  

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SEC vs Adani Moves Forward

After more than a year of legal back-and-forth, the U.S. Securities and Exchange Commission has cleared a basic but crucial hurdle in its civil fraud lawsuit against Indian billionaire Gautam Adani and his nephew, Sagar Adani. Their U.S. lawyers have now agreed to accept service of the SEC’s complaint, resolving a procedural snag that had prevented the case from formally moving forward.

That may sound mundane, but it matters. Until now, the lawsuit was effectively stuck in neutral because both defendants live in India, complicating the SEC’s ability to deliver legal papers in a way that meets U.S. court standards. With service accepted, a federal judge can allow the case to proceed, triggering a 90-day window for the Adanis to respond — including filing motions to dismiss or otherwise challenge the allegations.

The underlying case dates back to late 2024, when the SEC accused Gautam and Sagar Adani of violating U.S. securities laws in connection with a debt offering tied to Adani Green Energy. The agency alleges that investors were misled about compliance risks and the use of funds, including claims related to improper payments. The Adani Group has repeatedly denied wrongdoing and characterized the accusations as baseless.

This lawsuit didn’t emerge in a vacuum. Adani has been under intense international scrutiny since early 2023, when U.S. short seller Hindenburg Research accused the conglomerate of accounting fraud, stock manipulation, and excessive leverage. That report wiped tens of billions of dollars off Adani Group market value, triggered regulatory probes in India, and forced the group to rethink fundraising plans — even as it continued to insist its governance and disclosures were sound.

While some of the immediate market shock from Hindenburg has faded, the SEC case keeps the pressure on. For global investors, the significance isn’t just about one conglomerate, but about how aggressively U.S. regulators are willing to pursue foreign executives whose companies tap American capital markets.

See you tomorrow.

Written by Yash Tibrewal. Edited by Shreyas Sinha.

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