Shares of Adani group companies corrected by up to 25 percent on Monday after the National Securities Depository Ltd (NSDL) froze the accounts of three foreign funds that are among the top stakeholders in the Adani Group.
As a result, Adani Group stocks including Adani Green, Adani Transmission, and Adani Gas hit lower circuit on NSE, down five percent each. Adani Enterprises slumped 20 percent.
As per the NSDL website, the accounts of Albula Investment Fund, Cresta Fund, and APMS Investment Fund were frozen on or before May 31. An account freeze means the funds would not be able to sell any of the existing securities nor buy any new ones.
These funds together own more than Rs 43,500 crore worth of shares in Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas, an Economic Times report said.
All three of them are registered under the same address in Port Louis and have a holding of 6.82 percent in Adani Enterprises, 8.03 percent in Adani Transmission, 5.92 percent in Adani Total Gas and 3.58 percent in Adani Green.
Top officials from custodian banks and law firms dealing with foreign investors reportedly said that this freeze could be due to disclosure of insufficient information on beneficial ownership as mandated by the Prevention of Money Laundering Act (PMLA).
(Edited by : Akanksha Upadhyay)