In this Jan 27, 2023 photo, people walk past an electronic display featuring news about Adani Group outside the Bombay Stock Exchange building in Mumbai, India. Australia's corporate regulator is reviewing a short-seller report that accused India's Adani Group of improper use of offshore tax havens to determine whether regulatory action is required. (PHOTO / AP)

SYDNEY – Australia's corporate regulator is reviewing a short-seller report that accused India's Adani Group of improper use of offshore tax havens to determine whether regulatory action is required, according to a spokesperson.

Hindenburg Research last week flagged concerns about the conglomerate, that included its high debt levels, triggering a $65 billion rout in the group's stocks.

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Adani Group

"ASIC will review the allegations against Adani and determine whether further inquiries are warranted," a spokesperson for the regulator told Reuters on Wednesday.

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The Adani Group said in a statement that the Hindenburg report "presents transactions related to Adani’s Australian businesses in a misleading way to purposefully undermine the reputation of the Adani Group, in order to pursue their own profit by short-selling shares in Adani Group companies."

"All our businesses are Australian companies that comply with Australian corporations and securities legislation," the statement said.

In Australia, the conglomerate operates the Carmichael coal mine and the Abbot Point port, which was renamed North Queensland Export Terminal.

On Tuesday, a crucial $2.5 billion share sale for the Adani Group was fully subscribed with foreign institutional investors and corporate funds taking part, although participation by retail investors was low.

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The Sydney Morning Herald first reported that the ASIC was looking into the allegations against Adani.