12 offshore funds investing
in Adani Group breached disclosure rules: SEBI
India's market regulator,
the Securities and Exchange Board of India (SEBI), uncovered that twelve
offshore funds investing in Adani Group companies had breached
disclosure regulations and exceeded investment limits, as reported by Reuters,
citing unnamed sources.
Reuters had first reported
that SEBI had discovered breaches of disclosure rules by listed entities and
offshore funds exceeding investment limits in August last year.
Furthermore, it was
investigating the Adani Group's relationship with one of the funds to determine
if there was potential coordination with the conglomerate's primary
shareholders, an allegation previously denied by Adani.
Earlier this year, the
regulator reportedly issued notices to twelve offshore investors associated
with the Adani Group, outlining the allegations and seeking clarification on
violations of disclosure requirements and investment limits.
"The offshore funds
were reporting their investment in Adani Group companies at the individual fund
level. The regulator wanted the disclosure of holdings at the offshore fund
group level," Reuters reported, citing a source.
Eight of these offshore
funds have requested to settle the charges by paying a penalty without
admitting guilt, as per the sources cited by the agency.
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.
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 collectively submitted 16 settlement
applications to Sebi, as reported by The Economic Times.
SEBI targeted a total of 13
Foreign Portfolio Investors (FPIs) for scrutiny, including the initial eight
mentioned and five additional entities Emerging India Focus Funds, EM Resurgent
Fund, Polus Global Fund, New Leaina Investments, and Opal Investments.
However, the investigation
faced obstacles as SEBI encountered difficulties in identifying the ultimate
beneficial owners of these FPIs and their potential connections to the Adani
Group.
www.business-standard.com.
dt. 23.04.2024