Sebi, DRI probing Adani Group companies, government tells Lok Sabha


MUMBAI: Market regulator Sebi and the Directorate of Revenue Intelligence (DRI) are investigating companies belonging to the Adani group for violations of some of the regulations, junior minister for finance Pankaj Chaudhary told the Lok Sabha on Monday.
He said that the regulator’s probe focused on compliance of the companies with its regulations but did not disclose the names of the companies that are under the scanner. The DRI was “investigating certain entities belonging to the Adani Group… under laws administered by it,” Parliament was informed.
Responding to questions from TMC’s Mahua Moitra, the minister said the government could not disclose information related to income tax but ruled out any probe by the Enforcement Directorate.
On Monday, shares of Adani group companies — Adani Total Gas, Adani Power, Adani Transmission, Adani Ports & Special Economic Zone, Adani Green Energy and Adani Enterprises — took a beating, closing between 1% and 4.8% lower.
Chaudhary said that in 2016, Sebi had frozen the accounts of three of the six Mauritius-based investors, which are seen to have invested most of their money in stocks of Adani Group companies.
The regulatory action was due to their dealings in Global Depository Receipt (GDR) by some other companies but there was no bar on them for holding shares of other companies.
On June 14, stock prices of all the six Adani group companies had nosedived, some by as much as 25% in intra-day trades, after it was found that three Mauritius-based foreign portfolio investors (FPIs) — Albula Investments, APMS Investment and Cresta Fund — were barred by Sebi.
Later, the group led by Gautam Adani, the second richest Indian, clarified, citing a communication from NSDL, the depository, that these entities were barred from investing in GDR, for regulatory violations in 2016, but were free to invest in stocks of Indian companies directly. Following the mid-June incident, Moitra had also taken to Twitter to raise the issue of investigations by regulators and investigating agencies about holdings by these FPIs.





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