SEBI finds 12 offshore funds violated rules in Adani transactions
The Securities and Exchange Board of India (SEBI), the nation's market regulator, has found that 12 offshore funds violated disclosure rules and exceeded investment limits in their transactions with Adani Group companies. SEBI is currently investigating a potential link between the Adani Group and one of these funds to determine possible collusion with the conglomerate's primary shareholders, a claim consistently denied by Adani.
SEBI issued notices to 12 offshore investors associated with Adani
Earlier this year, SEBI reportedly issued notices to twelve offshore investors associated with the Adani Group. These notices outlined the allegations and sought explanations for violations of disclosure norms and investment caps. According to a source quoted by Reuters, "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."
8 offshore funds implicated in the investigation propose settling charges
Eight of the offshore funds implicated in the investigation have proposed settling the charges by paying a fine without admitting any wrongdoing. In a previous case, SEBI had identified 13 foreign portfolio investors (FPIs) for not revealing information about their ultimate beneficial owners in listed Adani entities. Eight of these FPIs are now seeking resolution with the regulator on securities violation issues.
16 settlement applications submitted to SEBI
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. The regulator examined five additional entities—Emerging India Focus Funds, EM Resurgent Fund, Polus Global Fund, New Leaina Investments, and Opal Investments.
