India’s market regulator, The Securities and Exchange Board of India (SEBI) has found that twelve offshore funds that had invested in Adani group companies had overreached their investment limits and broken disclosure regulations according to the Reuters.
Last year in August, Reuters had first reported that Sebi had found violations of disclosure regulations by listed businesses and offshore funds that exceeded investment limitations. Furthermore, it was looking into the Adani Group’s connection to one of the funds to see if there was any possible coordination with the conglomerate’s primary shareholders a charge that Adani has previously denied.
Citing a source Reuters said, 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. Eight of these offshore funds have requested to settle the charges by paying a penalty without admitting guilt.
The regulator earlier this year sent notices to a dozen Adani group’s offshore investors outlining the charges and asking them to explain their positions on the disclosure violations and breach of investment limits, the sources said.
The current situation calls into question the transparency , accountability and supervision procedures governing foreign investments in Indian businesses, especially in well-known conglomerates such as the Adani Group. It emphasises how crucial strong regulatory frameworks are to ensuring honest and open market operations.
About the Adani Group
The Adani Group is a conglomerate based in India that works in a variety of industries including energy, agribusiness, minerals, logistics, and real estate. They are well-known for doing large-scale infrastructure projects such as port development, airport expansion, and power plant construction.
It is a diverse firm that operates in ports, agribusiness, logistics, power, solar, and renewable energy. Gautam Adani formed the business in 1988, and it has evolved to become one of India’s largest corporations. Adani Group’s major projects include the Mundra Port, India’s largest private port, and Adani Power Ltd, India’s largest private thermal power producer.