India’s markets regulator found that twelve offshore funds investing in Adani Group companies violated disclosure rules and exceeded investment limits, Reuters reported.
In August last year, Reuters had initially revealed that Sebi had detected violations of rules regarding disclosures by listed entities and restrictions on offshore fund holdings. Additionally, the regulatory authority was investigating links between Adani Group and a fund to ascertain whether there was possible coordination with the group’s primary shareholders, an allegation Adani had previously rejected.
Earlier this year, sources revealed that the regulator had issued notices to twelve offshore investors linked to the Adani Group, detailing the allegations and requesting clarification regarding their stance on violations of disclosure requirements and investment limits.
“Offshore funds were reporting their investments in Adani group companies at the individual fund level. The regulator wanted offshore funds to disclose stakes at the group level,” Reuters quoted sources as saying. According to sources, eight of these offshore funds have submitted a written request to the regulator, seeking to resolve the charges by paying a fine without admitting guilt. Earlier, it was reported that 8 out of 13 foreign portfolio investors (FPIs) identified by SEBI for failure to maintain and disclose information related to their ultimate beneficial owners in listed Adani entities have been booked in connection with securities violation issues. Seeking a solution with the market regulator.
According to The Economic times report, the legal teams representing Albula Investment Fund, Cresta Fund, MGC Fund, Asia Investment Corporation (Mauritius), APMS Investment Fund, Elara India Opportunities Fund, Vespera Fund and LTS Investment Fund have collectively filed 16 petitions to SEBI. Settlement applications have been submitted.
The regulator identified a total of 13 foreign portfolio investors (FPIs) for investigation, which includes five additional entities along with the initial eight – Emerging India Focus Funds, EM Resurgent Fund, Polus Global Fund, New Lena Investments and Opal Investments.
Nevertheless, the investigation stalled as SEBI faced challenges in identifying the ultimate beneficial owners of these FPIs and their possible links with the Adani Group.
