According to Reuters, the violation of disclosure regulations and exceeding investment limits by twelve offshore funds that had invested in Adani group companies was uncovered by India's market regulator.
In August last year, Reuters first reported that SEBI had found violations of regulations related to disclosures by listed companies and limitations on offshore fund investments.
Furthermore, the regulatory body was looking into the connection between the Adani Group and a particular fund to determine if there was any possible collaboration with the conglomerate's main stakeholders, an accusation that Adani has denied in the past.
Earlier in the year, it was disclosed by sources that the regulatory body had sent notifications to twelve offshore investors linked to the Adani group.
These notifications outlined the accusations and sought clarification regarding their position on the breaches of disclosure obligations and investment restrictions.
Reuters added in their report, the investment in Adani group companies by the offshore funds was being reported on an individual fund basis. The regulator required the disclosure of the holdings at the group level of the offshore funds.
Based on the information provided, the regulator has received a written request from eight offshore funds to settle the charges by paying a penalty without acknowledging any wrongdoing, as per the sources.
Previously, it was stated that 8 out of the 13 foreign portfolio investors (FPI) recognized by SEBI for their non-compliance in disclosing and maintaining information about the ultimate beneficial owners in Adani entities listed on the stock market, are currently engaging with the regulatory authority to address concerns related to violations in securities.
The Economic Times report says,Sebi has received a total of 16 settlement applications from the legal teams representing Albula Investment Fund, Cresta Fund, MGC Fund, Asia Investment Corporation (Mauritius), APMS Investment Fund, Elara India Opportunities Fund, Vespera Fund, and LTS Investment Fund.
The regulatory body identified 13 Foreign Portfolio Investors (FPIs) for scrutiny, which includes the original eight as well as five new entities - Emerging India Focus Funds, EM Resurgent Fund, Polus Global Fund, New Leaina Investments, and Opal Investments. However, the investigation faced obstacles as SEBI struggled to determine the true beneficial owners of these FPIs and their potential connections to the Adani Group.
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