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India's market regulator discovered that twelve offshore funds, which had invested in Adani group companies, had violated disclosure regulations and exceeded investment limits, according to Reuters report. In August of last year, Reuters initially disclosed that SEBI had discovered breaches of regulations regarding disclosures by listed entities and restrictions on offshore fund holdings. Additionally, the regulatory authority was investigating the relationship between the Adani Group and one of the funds to ascertain whether there was potential coordination with the conglomerate's primary shareholders, an allegation that Adani has previously refuted. Earlier this year, sources revealed that the regulator had issued notices to twelve offshore investors associated with the Adani group, detailing the allegations and requesting clarification regarding their stance on the violations of disclosure requirements and investment limits. "The offshore funds were reporting their investment in Adani group companies at individual fund level. Regulator wanted the disclosure of holding at offshore fund group level," sources were quoted as saying by Reuters. According to the sources, eight of these offshore funds have submitted a written request to the regulator, seeking to resolve the charges by paying a penalty without admitting guilt. Earlier, it was reported that out of the 13 foreign portfolio investors (FPI) identified by SEBI for their failure to uphold and reveal information concerning their ultimate beneficial owners in listed Adani entities, 8 are seeking resolution with the markets regulator regarding securities violation issues. 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 submitted 16 settlement applications to Sebi, according to The Economic Times report. The regulator pinpointed a sum of 13 Foreign Portfolio Investors (FPIs) for examination, encompassing the initial eight mentioned alongside five additional entities—Emerging India Focus Funds, EM Resurgent Fund, Polus Global Fund, New Leaina Investments, and Opal Investments. Nevertheless, the inquiry hit a roadblock as SEBI encountered challenges in identifying the ultimate beneficial owners of these FPIs and their potential ties to the Adani Group. Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!
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Published: 22 Apr 2024, 10:35 PM IST
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