Adani Group stocks witness volatility after NSDL clarifies 3 foreign funds accounts as 'active'

These three foreign funds accounts were - Cresta Fund, Albula Investment Fund and APMS Investment Fund.

Jun 15, 2021 10:06 IST India Infoline News Service

A sharp selloff that had been a result in the previous trading session due to reports claiming that NSDL has frozen three foreign funds accounts investments in Adani Group's listed companies - has finally cooled down. On Tuesday, the Group's stocks were trading in a volatile session after the NSDL clarified the matter and stated that these accounts are 'active'.

Adani Group companies issued NSDL's clarification in the early morning of Tuesday. As per the regulatory filing, NSDL clarified that "We wish to inform you that the status of the Demat account of your shareholders may be verified from NSDL DPM (SHR) system available with your RTA and the beneficiary position details downloaded to your RTA. The current status of the Demat accounts of the shareholders is available in the DPM (SHR) system."

"As may be verified from the said system, the status of Demat accounts mentioned in your trail email are held in 'Active" status in NSDL system," the Indian central securities depository said.

These three foreign funds accounts were - Cresta Fund, Albula Investment Fund and APMS Investment Fund.

On Monday, Adani Group said, "We bring to your kind attention, the news headlines published in ET that NSDL has frozen the accounts of 3 foreign funds- Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in Adani Group Companies. We regret to mention that these reports are blatantly erroneous and is done to deliberately mislead the investing community. This is causing irreparable loss of economic value to the investors at large and reputation of the group."

The Group further said, "Given the seriousness of the article and its consequential adverse impact on minority investors, we requested Registrar and Transfer Agent, with respect to the status of the Demat Account of the aforesaid funds and have their written confirmation vide its e-mail dated 14th June 2021, clarifying that the Demat Account in which the aforesaid funds hold the shares of the Company are not frozen."

The media reports circulated last week that NSDL had frozen the accounts of the above-mentioned three FPIs who have invested together about Rs43,500cr in four Adani Group companies - Adani Enterprises, Adani Green Energy, Adani Transmission, Adani Total Gas.

At around 10.23 AM, Adani Enterprises was trading at Rs1496.90 per piece down by 0.3% on Sensex. The stock was in a volatile session as it had touched the day's high of Rs1572.90 per piece. The stock pared its early gains of nearly 5% and was trading in the red.

Similarly, after surging by over 4% with an intraday high of Rs802 per piece, Adani Ports was in the red and was trading at Rs763.25 per piece down 0.7%.

Also, Adani Green jumped by nearly 5% with an intraday high of Rs1234.70 per piece in the early trading session. However, the stock was currently trading flat at Rs1176 per piece.

Stocks like Adani Transmission, Adani Total Gas and Adani Power were trading at a 5% lower circuit. 

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