Adani Group stocks may see upgradation in ratings after the Securities Exchange Board of India said that the allegations against the group’s senior officials cannot be established in Hindenburg Case, according to Manish Singh, chief investment officer, Crossbridge Capital.

SEBI’s clean chit in the Hindenburg case is not only a good news for the group but also for India, given Adani companies’ impact on overall development of the country. “In my opinion, India needs a few more Adani companies,” he said.

“Investors rely on market regulators to iron out things when questions arise on legitimacy of a particular business. So, when regulator steps in and investigate the matter and deem a certain company clean, it gives big boost to investors’ confidence,” Singh said in an interview to NDTV Profit. “It’s the same for foreign investors because they also watch how the regulators are and how much control they have and what they are doing before putting money in India.”

SEBI’s clean chit is important for India because the cost of capital in India is high, and it’s a big factor in India’s development story. Hence, if confidence on a business erodes, the cost of capital goes up, he said.

SEBI imposed no penalty and cleared Adani Ports & Special Economic Zone Ltd., Adani Power Ltd., and Adani Enterprises Ltd. of any liabilities. Adani Group Chairperson Gautam Adani and Adani Enterprises Managing Director Rajesh Adani were also cleared.

No liabilities were also found on Jugeshinder Singh, Milestone Tradelinks Pvt. Ltd. and Rehvar Infrastructure Pvt. Ltd.