Five offshore funds, including LTS Investment Fund and Cresta Fund, have withdrawn their legal challenges against SEBI at the Securities Appellate Tribunal. The entities plan to file updated petitions regarding SEBI's adjudication process. These funds were previously named in the 2023 Hindenburg Research report involving the Adani Group.
The Securities Appellate Tribunal (SAT) on Monday allowed five offshore investment funds to withdraw their pending appeals against the Securities and Exchange Board of India (SEBI). The group of funds includes LTS Investment Fund Ltd, Cresta Fund Ltd, Asia Investment Corporation (Mauritius) Ltd, APMS Investment Fund Ltd, and Albula Investment Fund Ltd.
These entities had initiated legal action to challenge the specific procedures SEBI used during its adjudication process. The core of their argument involved Rule 4(3) of the SEBI rules regarding inquiries and the imposition of penalties. The funds contended that the adjudicating officer was required to form and share a reasoned opinion on whether to continue proceedings after reviewing replies to show-cause notices, and to do so before scheduling any personal hearings.
Legal representatives for the funds requested the tribunal’s permission to withdraw the current petitions so they could file revised versions with necessary amendments. The tribunal granted this request and dismissed the existing appeals as withdrawn, clearing the way for the funds to submit their updated filings.
These five funds were initially identified in connection with the January 2023 report published by Hindenburg Research concerning the Adani Group. While the broader investigation into Adani Group companies, chairman Gautam Adani, and related entities was concluded by SEBI in September 2025 with no violations of securities regulations found, separate adjudication proceedings concerning these specific offshore funds have remained ongoing.
For investors, the legal status of these funds and the procedural disputes with the regulator remain a point of interest, though the primary investigation into the Adani Group entities has been settled. The next step in this matter will be the submission of the modified petitions by these funds, which will determine the future direction of these ongoing adjudication proceedings.