Sebi rejects settlement applications by 13 foreign funds in Adani probe

By Akriti Sharma

 

India’s markets regulator rejected settlement applications from overseas funds with significant stakes in Adani Group companies after their proposed terms fell short of the regulator’s requirements, the Economic Times reported.

 

The Securities and Exchange Board of India told the funds’ representatives last week that it had turned down their applications, the newspaper reported, citing people it didn’t identify. As many as 13 overseas portfolio investors sought to settle an investigation dating to 2020 into whether they were genuine public shareholders or companies acting for Adani Group founders, the business daily said.

 

Some of the funds were unwilling to provide information the regulator considered necessary to settle the case, while others resisted demands to disgorge money sought by Sebi, the newspaper said.

 

 

Sebi, Adani Group and the foreign investors did not respond to emailed queries by the Economic Times. The regulator and Adani Group did not immediately respond to emails from Bloomberg News seeking comment outside regular business hours. The 13 foreign investors named in the report could not be reached.

 

The development marks a fresh twist in a yearslong investigation that was cited by former short seller Hindenburg Research in its short-sale report in its 2023, alleging corporate malpractice at the Adani Group. The ports-to-power conglomerate repeatedly denied those allegations. 

 

India’s regulator in 2024 asked some global funds to defend themselves against possible violations of disclosure norms. The conglomerate has denied any links to the funds, which faced intense scrutiny in June 2021 for investing almost all of their assets in Adani stocks.

 

The 13 funds being probed by Sebi include Albula Investment Fund, Cresta Fund, Asia Investment Corporation (Mauritius), APMS Investment Fund, Elara India Opportunities Fund, Vespera Fund, and LTS Investment Fund. These funds owned significant equity in listed Adani Group companies. They subsequently reduced their holdings in the conglomerate’s units, according to the latest shareholding data.