Adani Group companies in regulator’s radar for non-compliance of rules

• SEBI and Directorate of Revenue Intelligence (DRI) are investigating some Adani Group companies for non-compliance of rules, said Minister of State for finance in parliament.
• Shares of Adani group companies headed by billionaire Gautam Adani have taken a hit on an investigation report.
• However, Adani Group put out a statement saying that it believes in ‘compliance of applicable laws’.

On Monday, July 19, Pankaj Chaudhary, Minister of State (MoS) for finance told India’s parliament that the country’s market regulator and customs authorities are investigating some Adani Group companies for non-compliance of rules.

Shares of Adani Group companies took a hit after news came out that Securities Exchange Board of India (SEBI) and Directorate of Revenue Intelligence (DRI) are investigating the group companies.

Stocks of Adani Enterprises, Adani Ports and Special Economic Zones, Adani Green Energy, Adani Power and Adani Transmission closed 1-5% lower on July 19 on such a report.

To clear air around the matter, the company released a statement saying, “We have always been transparent with all our regulators and have full faith in them... Adani Group is a responsible corporate citizen and strongly believes in compliance of applicable laws and adheres to prudent corporate governance framework.”

Last month, on June 14, shares of these companies had fallen on reports that the National Securities Depository Limited (NSDL) suspended the accounts of three foreign funds ⁠— all reportedly based out of the same address ⁠— that have over ₹43,000 crore invested in the Adani Group.

An Economic Times report had stated that the market regulator, SEBI, is investigating if the share price of Adani Group companies has been manipulated. The investigation is still ongoing, the report added.

The three accounts in question were Albula Investment Fund, Cresta Fund and APMS Investment Fund. Notably, the accounts were suspended on or before May 31.

According to an Economic Times report, the suspension could be due to insufficient disclosures under the Prevention of Money Laundering Act (PMLA).

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