SEBI finds breaches by 12 offshore funds investing in Adani Group: Report
SEBI has uncovered breaches of disclosure regulations and exceeded investment limits by twelve offshore funds investing in Adani Group companies.
FollowIndia's Securities and Exchange Board of India (SEBI) has reportedly uncovered breaches of disclosure regulations and exceeded investment limits by twelve offshore funds investing in Adani Group companies, according to Reuters, citing anonymous sources. This revelation follows Reuters' initial report last August, which highlighted SEBI's discovery of breaches in disclosure rules by listed entities and offshore funds surpassing investment limits.
SEBI's investigation also delves into the Adani Group's association with one of the funds to probe potential coordination with the conglomerate's primary shareholders, an accusation previously refuted by Adani. Earlier this year, SEBI reportedly issued notices to twelve offshore investors linked to the Adani Group, outlining allegations and seeking clarification on violations of disclosure requirements and investment limits.
Reportedly, these offshore funds had been reporting their investments in Adani Group companies at the individual fund level, while the regulator sought disclosure of holdings at the offshore fund group level, as per Reuters' sources. Eight of these funds have expressed a desire to settle charges by paying a penalty without admitting guilt, according to agency sources.
Previously, SEBI identified 13 foreign portfolio investors (FPIs) for failing to disclose information about their ultimate beneficial owners in listed Adani entities, with eight seeking resolution with the regulator on securities violation issues.Â
Legal representatives for 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 jointly submitted 16 settlement applications to SEBI, as reported by The Economic Times.
SEBI's scrutiny extended to a total of 13 Foreign Portfolio Investors (FPIs), including the initial eight and five additional entities -- Emerging India Focus Funds, EM Resurgent Fund, Polus Global Fund, New Leaina Investments, and Opal Investments. However, the investigation encountered hurdles as SEBI faced challenges in identifying the ultimate beneficial owners of these FPIs and their potential ties to the Adani Group.
