Shares of Adani Group companies fell sharply after a US regulator sought court permission to bypass Indian authorities while serving legal documents. The move triggered investor concern and led to heavy selling across multiple Adani-listed firms.

As a result, market sentiment around the conglomerate weakened during trading sessions in India.

⚖️ US Regulator Seeks Alternative Legal Route

The US Securities and Exchange Commission (SEC) asked a New York court for approval to serve legal summons directly on Gautam Adani and other defendants. The regulator said it faced difficulties serving documents through Indian government channels.

Consequently, the SEC requested permission to use alternative methods, including service by email and courier. The request relates to a civil securities case filed in the United States.

📊 Market Reaction Across Adani Stocks

Following the development, shares of several Adani Group companies dropped during trading.

The declines included:

• Adani Enterprises
• Adani Ports and Special Economic Zone
• Adani Power
• Adani Transmission

Meanwhile, broader Indian equity benchmarks showed mixed movement, indicating that losses remained largely concentrated in Adani-linked stocks.

🏛️ Background to the Legal Case

The SEC filed its lawsuit in 2024, alleging securities violations connected to bond offerings made by Adani entities. The regulator has said the defendants misled investors, an allegation the Adani Group has denied.

Previously, the Adani Group described the claims as “baseless” and said it would pursue all legal options to defend itself. Therefore, the case continues to draw close scrutiny from investors and analysts.

🌍 Cross-Border Legal and Political Sensitivity

The SEC’s request highlights the complexity of cross-border legal proceedings involving major multinational companies. Serving legal documents across jurisdictions often requires cooperation between governments, which can slow proceedings.

As a result, the regulator argued that alternative service methods were necessary to move the case forward. The court has not yet ruled on the request.

📈 Investor Confidence Remains Fragile

The latest legal development revived concerns among investors already wary of regulatory scrutiny surrounding the group. At the same time, analysts noted that legal uncertainty often increases volatility in heavily traded stocks.

However, some market participants cautioned against drawing conclusions before a court decision. Therefore, they said the case’s outcome remains uncertain.

🧭 What Happens Next

The US court will decide whether to grant the SEC permission to bypass traditional service channels. Until then, the legal case remains active, and further developments could influence market movement.

Meanwhile, investors continue to monitor both regulatory actions and company responses closely.