Infosaurs- Multiple Adani Group companies under the radar of SEBI and DRI, Finance ministry tells Parliament

Multiple Adani Group companies under the radar of SEBI and DRI, Finance ministry tells Parliament

India’s securities regulator and customs authorities are investigating some Adani Group companies for non-compliance of rules, the country’s junior finance minister told parliament on Monday.

It was not immediately clear when the Securities and Exchange Board of India (SEBI), or the Directorate of Revenue Intelligence (DRI)) launched the investigation.

the minister of State for Finance, Pankaj Chaudharydid not name which companies were involved.

Shares of Adani group companies, which operate airports and ports, power generation and transmission, coal and gas trading, closed between 1.1%-4.8% lower on Monday.

“SEBI is investigating some Adani Group companies with regard to compliance with SEBI Regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group,” Chaudhary said.

Six companies of the Adani Group are listed and traded on recognized stock exchanges in India. The holding of FPIs (foreign portfolio investment)t) is based on day to day trading of shares.

The Minister also clarified that three funds namely, Albula Investment Fund Ltd., Cresta Fund Ltd. and APMS Investment Fund Ltd were indeed frozen by SEBI in June.

While this had been reported earlier, a clarification was later issued by NSDL saying that these accounts are not frozen in the case of Adani companies.

Stocks of companies controlled by Indian billionaire Gautam Adani last month recorded their biggest-ever declines in the week ending June 18, after newspaper Economic Times reported the accounts of three Mauritius-based foreign investors in Adani companies had been frozen.

Shares in the six Adani companies have fallen between 12.9%-44.9% in the five weeks after the Economic Times report,

The stocks have cumulatively lost over $37.6 billion in just over a month after the Economic Times report, even after Adani rejected the article as “blatantly erroneous.”

SOURCE:

https://www.moneycontrol.com/news/business/economy/multiple-adani-group-companies-being-investigated-by-sebi-dri-finance-ministry-tells-parliament-7192001.html

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