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Adani Group shares tank on stock market after NDSL freezes 3 foreign funds

Flagship Adani Enterprises suffered its steepest crash in nearly a decade, with shares falling by as much as 25%. 

Adani Group shares tank on stock market after NDSL freezes 3 foreign funds-VPN
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Mumbai, First Published Jun 14, 2021, 1:37 PM IST
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Shares of Adani Group companies tanked at the stock market after reports emerged that the National Securities Depository Limited had frozen the accounts of three foreign funds among the firms' top stakeholders.

Flagship Adani Enterprises suffered its steepest crash in nearly a decade, with shares falling by as much as 25%. 

Adani Ports and Special Economic Zone,  listed on Nifty 50, fell as much as 19% before recovering slightly.

Media reports said that the Mauritius-based accounts that were frozen -- Cresta Fund, APMS Investment Fund and Albula Investment Fund -- are registered with the Securities and Exchange Board of India as foreign portfolio investors. The action was taken against the three funds as they reportedly failed to disclose sufficient information regarding beneficial ownership as mandated under the Prevention of Money Laundering Act.
 
The funds can no longer buy any new securities or sell any of the existing securities as a result of the freeze.

According to the Economic Times, the Port Louis-registered entities together hold 8.03% in Adani Transmission, 6.82% in Adani Enterprises, 5.92% in Adani Total Gas and 3.58% in Adani Green.

A response from the Adani Group is awaited.

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