Shares of Adani Group companies fell up to five percent on the BSE during early trade on Tuesday after the Minister of State for Finance Pankaj Chaudhary on Monday said that markets regulator Securities and Exchange Board of India (Sebi) and the Directorate of Revenue Intelligence (DRI) are probing some Adani Group companies for alleged non-compliance with rules.
Shares of Adani Total Gas, Adani Transmission, and Adani Green Energy were down five percent each. Shares of Adani Power (down 4.9 percent), Adani Enterprises (down 1.64 percent), and Adani Ports (down 0.69 percent), fell in that order on the BSE.
MoS Finance in a written reply to a question in Lok Sabha said accounts of three of the six Mauritius-based funds, that have invested most of their money in Adani Group firms, were frozen in 2016 over the issuance of Global Depository Receipt (GDR) by certain listed firms. No freeze was ordered for their holding in other firms.
"Sebi is investigating some Adani Group companies concerning compliance with Sebi regulations," he said without giving details. Also, DRI "is investigating certain entities belonging to the Adani Group of Companies under laws administered by it," he said.
The minister did not name which of the Adani Group companies were being investigated by Sebi and DRI. He also did not elaborate on the nature of the violation. He however said the Enforcement Directorate (ED) wasn't investigating the Adani Group.
Adani Group later clarified that it has not received any communication or information requests recently from SEBI or and the DRI show cause notice issued about five years ago. but the investigating agency had found "no over-valuation of equipment" and the matter is before the appellate tribunal.
"We have always been transparent with all our regulators and have full faith in them. While we have always been fully compliant with regards to Sebi regulations, we have made full disclosure to SEBI on specific information requests from them in the past. However, we have not received any communication or information requests recently," said Adani Group spokesperson on Monday.
Shares of port-to-energy group nosedived last month after reports that accounts of three of the six Mauritius-based funds that have invested most of their money in Adani Group firms had been frozen by the national share depository. The three funds owned about six billion dollars of shares across the conglomerate.
The Adani Group on June 14 denied the report of the freeze, calling it "blatantly erroneous". A day later it clarified that three demat accounts of Cresta Fund Ltd, Albula Investment Fund Ltd, and APMS Investment Fund were "suspended for debit".
(With inputs from PTI)
First Published: IST