U.S. regulatory efforts to serve summons directly to Adani executives is influencing market sentiment, underlining legal risk as a factor in stock price moves. (BizTrendWire Insight)
Shares of Adani Group companies in India fell sharply on Friday after the U.S. Securities and Exchange Commission sought court permission to serve legal summons directly to key executives.
The slide in stock prices came as the SEC asked a U.S. court to allow personal service of summons by email to conglomerate founder Gautam Adani and executive Sagar Adani.
The legal move relates to alleged fraud and a $265 million bribery case linked to Adani entities, according to filings.
Adani Enterprises shares dropped as much as 9.1%, marking their lowest level since mid-2023.
The U.S. regulator has been trying to serve the summons since last year. It said India has rejected prior requests to deliver the documents through official channels.
The indictment, unsealed in November 2024, alleges executives paid bribes to Indian officials to secure energy contracts and misled investors.
Adani Group has called the allegations baseless and has said it will defend itself legally.
Source: Reuters
