New Delhi, Sept. 18 -- The stock market regulator on Thursday cleared Adani Group and its top executives of allegations of bypassing related-party transaction rules levelled by Hindenburg Research, bringing the curtains down on an episode that has stretched out across 15 months.

While Adani Group firms did route funds through three companies, as alleged by Hindenburg, these transactions were not illegal at the time they were made, the Securities and Exchange Board of India said. In two orders, signed by whole-time member Kamlesh Varshney, Sebi disposed of the proceedings against all noticees, which included Gautam Adani, his brother Rajesh Adani, and Group chief financial officer (CFO) Jugeshinder Singh.

The Sebi investigation was trigg...