Adani Group companies under SEBI, DRI radar for non-compliance of rules

The Directorate of Revenue Intelligence (DRI) and market regulator Securities and Exchange Board of India (Sebi) are investigating some Adani Group companies for non-compliance of rules, junior finance minister Pankaj Chaudhary said in a written response in the Lok Sabha.




“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 of Companies under laws administered by it,” Chaudhary said.

He was replying to questions raised by TMC MP Mahua Moitra. It’s not yet clear when the authorities launched the probe. The minister,however, did not revealed the name of the companies being investigated.

Chaudhary also clarified that Enforcement Directorate is not probing the companies holding FPIs based on day-to-day trading of shares.

Six companies of the Adani Group are listed and traded on recognised stock exchanges in India. Following the statement made by Chaudhary, Shares of the conglomerate, closed between 1.1%-4.8% lower on Monday.

The government further clarified that the three foreign portfolio investors — Albula Investment Fund Ltd, Cresta Fund Ltd, Apms Investment Fund Ltd — were not in the frozen list of the country’s securities depository in relation to their investment in Adani Group companies.

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“In a matter pertaining to issuances of Global Depository Receipt (GDR) by certain Indian listed companies, SEBI vide Order dated June 16, 2016 had directed depositories to freeze particular beneficiary accounts of certain FPIs including Albula Investment Fund Ltd., Cresta Fund Ltd., and APMS Investment Fund Ltd,” the minister told Parliament. However, no order in respect of other beneficiary accounts of these three FPIs has been passed by SEBI, he added.

Earlier, NSDL issued a clarification saying that these accounts are not frozen in the case of Adani companies.

Last month, stocks of companies controlled by billionaire Gautam Adani recorded their biggest-ever declines in the week ending June 18, after a report in Economic Times said the accounts of three Mauritius-based foreign investors in Mr Adani companies had been frozen by NSDL.