Three foreign funds with more over 43,000 crore in Adani Group shares have had their accounts frozen. SEBI, the stock exchange regulator, is apparently looking into whether the share prices of Adani group firms have been manipulated. Inside the principal hour of exchanging, the offers of the Adani Group’s six publicly traded firms had hit their respective lower channels.
During today’s morning (June 14) opening session, shares of the six Adani Group firms listed on Indian stock exchanges reached lower channels. The stock prices of Adani Ports and Adani Transmission both declined 15%, while the stock prices of the other four firms each decreased 5%.
According to Forbes Real-Time Billionaires, the downward spiral in the stock prices of those firms took away more than $ 7.6 billion (approximately 55,000 crore) off Gautam Adani’s net worth. listing, starting at 10:00 a.m. on Monday.
The fall was hastened by news that the National Securities Depository Limited (NSDL) had frozen the accounts of three foreign funds with over 43,000 crore invested in the Adani Group, all of which were headquartered at the same address. Albula Investment Fund, Cresta Fund, and APMS Investment Fund are the three accounts in dispute. Notably, the accounts were to be stopped before May 31.
According to a report in the Economic Times, the suspension might be due to inadequate declarations under the Money Laundering Prevention Act (PMLA).
The funds have until 2020 to reveal information about their joint ownership and key employees’ personal information. However, this was not the case. According to the article, which cited an unidentified source, “custodians normally notify their customers before such action,” but “if the fund does not reply or cooperate, accounts may be frozen.”
The regulations for Indian funds trading in the stock market prohibit managers from investing more than a particular amount in any stock or group. However, overseas portfolio investors are exempt from this requirement.
The three funds in question, according to The Morning Context, a research and media business, draw more than 95 percent of their net value from their investments in Adani group enterprises.
The given data raises two problems. To begin, funds are accumulating Adani group shares in order to lower the amount of tradable shares on the market. And, consequently, allowing the value of the shares to inflate. Second, it might be a money round trip, in which Indian investors invest in another nation to avoid the restrictions. None of these suppositions have been affirmed at this point.
The Securities Exchange Board of India (SEBI), as indicated by the Economic Times storey, is probing whether the share prices of Adani group firms have been manipulated. According to the article, the inquiry is still underway.
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