SEBI finds 12 offshore funds invested in Adani Group in violation of disclosure norms

23 Apr 2024 , 11:12 AM

SEBI has reportedly found that twelve offshore funds invested in Adani group companies violated disclosure rules and exceeded investment limits, according to sources familiar with the matter.

The individuals, speaking on condition of anonymity due to unauthorized disclosure, stated that both the Securities and Exchange Board of India (SEBI) and the Adani Group did not immediately respond to emailed requests for comment.

Earlier reports from Reuters had highlighted SEBI’s findings of rule violations by listed entities and breaches of offshore fund holdings limits in August last year.

SEBI was reportedly investigating the Adani Group’s connections with one of the funds to determine if there were actions “in concert” with the conglomerate’s major shareholders, an allegation previously denied by Adani.

Notices were allegedly sent earlier this year by the regulator to twelve offshore investors of the Adani group, outlining charges and seeking explanations regarding disclosure violations and investment limit breaches, according to the sources.

According to the sources, “The offshore funds were reporting their investment in Adani group companies at the individual fund level. Regulator wanted the disclosure of holding at offshore fund group level.”

Reportedly, eight of the identified offshore funds have reached out to the regulator, expressing a desire to settle the charges by paying a penalty without admitting guilt, as per the sources.

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