An investigation into claims made by Hindenburg Research against businesses owned by multi-billionaire Gautam Adani has been confirmed by India's market regulator.
SEBI, the Securities and Exchange Board of India, also claims to be observing market activity related to the report.
Following accusations of market manipulation and financial fraud, Mr. Adani's business empire saw over $100 billion (£82 point 3 billion) wiped off its stock market value.
The allegations were refuted by Adani Group.
In a Supreme Court document filed on Monday, SEBI stated that it was investigating the claims as well as "the market activity immediately prior to and post the publication of the report.".
In a filing to the Supreme Court, SEBI further stated that it had "strong and adequate authority" to establish regulatory frameworks for the development and stability of the securities markets.
Additionally on Monday, Adani Group took action to reassure investors by claiming that its business plans were fully funded and that it had strong cashflows.
According to the company, its portfolio will continue to be able to provide shareholders with superior returns.
A BBC request for comment was not immediately answered by the Adani Group.
Adani Enterprises, the conglomerate's flagship company, is scheduled to release its quarterly financial results later on Tuesday.
Seven publicly traded companies in Mr. Adani's group, including renewable energy, commodities trading, ports, airports, and utilities, operate in a variety of industries.
In a report released last month, short-seller Hindenburg Research, based in the US, claimed that Adani Group companies had been involved in years of "brazen" stock manipulation and accounting fraud.
Additionally, it stated that the "substantial debt" owed by its companies put the whole group on "precarious financial footing.".
A short sale is a bet that the value of an asset will decrease.
Without providing any supporting data, Adani Group previously claimed that the purpose of the Hindenburg report was to allow the US-based short seller to book profits.