A emblem of the Adani Group
| Photo Credit: Reuters
India’s markets regulator discovered a dozen offshore funds invested in Adani Group firms had been in violation of disclosure rules and in breach of funding limits, two individuals with direct information of the matter said on April 22. They declined to be named as they not authorised to converse to media.
The Securities and Exchange Board of India (SEBI) and the Adani Group didn’t instantly reply to emailed requests for remark.
Reuters had first reported that the SEBI uncovered the violation of rules on disclosures by listed entities and limits on the holdings of offshore funds in August final 12 months.
The regulator was additionally trying into Adani Group’s ties with one of the funds to decide whether or not it might be seen appearing “in concert” with the conglomerate’s key shareholders, an accusation Adani has rejected in the previous.
The regulator despatched notices to a dozen Adani Group’s offshore investors outlining the fees earlier this 12 months and asking them to clarify their positions on the disclosure violations and breach of funding limits, the sources said. “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,” said the primary of the 2 sources.
Eight of these offshore funds have approached the regulator through written request to settle the fees by paying a penalty with out admission of guilt, the sources added.
