After the US-based Hindenburg Research Report that had raised questions on the legitimacy of the Adani Group, once again the multinational company is navigating hot waters.
In a recent update from Reuters, two unidentified sources on Monday said, “India’s markets regulator found a dozen offshore funds invested in Adani group companies were in violation of disclosure rules and in breach of investment limits.” “The regulator earlier this year sent notices to a dozen Adani group’s offshore investors outlining the charges and asking them to explain their positions on the disclosure violations and breach of investment limits”, they added.
SEBI wanted the disclosure of Adani investment holding at offshore fund group level instead of individual fund level provided by these companies. Guilty charged, 8 offshore funds have requested to “settle charges by paying a penalty without admission of guilt.”
The Targeted FPIs
SEBI had identified a list of 13 FPIs to investigate for suspicious activities. These were:
- Albula Investment Fund
- Cresta Fund
- MGC Fund
- Asia Investment Corporation (Mauritius)
- APMS Investment Fund
- Elara India Opportunities Fund
- Vespera Fund
- LTS Investment Fund
- Emerging India Focus Funds
- EM Resurgent Fund
- Polus Global Fund
- New Leaina Investments
- Opal Investments
From which SEBI has issued notices to 12 FPIs who have violated disclosure rules and exceeded investment limits. Out of these, the top 8 FPIs have filed together 16 applications, requesting a settlement. SEBI is concerned about the legitimacy of these public shareholders and suspects that these shareholders may be proxies set up by the Adani Group to promote its business.
Effect on Shares Price
During the Hinderberg episode of last year, shares prices of Adani Group and related companies fell over 5% in the first two months after the report’s release. And in the next 10 months, the share price plummeted from a whopping 3944 INR to 349.5 INR. Although, the SC verdict saved Adani’s sinking boat and share prices rose once again.
Currently, Adani Enterprises is trading -0.17% lower at Rs 3,059.25 as compared to its last closing price. Adani Enterprises has been trading in the price range of 3,091.60 &3,043.50. Apparently, the latest buzz in the Adani world has not impacted its trading world.
