Non-Compliance: Sebi, DRI probing Adani firms, says govt

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July 20, 2021 4:10 AM

“Sebi is investigating some Adani Group companies with regard to compliance with Sebi regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group of Companies under laws administered by it,” Union minister of state for finance Pankaj Chaudhary informed the Lok Sabha.

SebiCommenting on the issue, an Adani Group spokesperson said the conglomerate has always been compliant with Sebi regulations and it hasn’t received any request from the market regulator recently.

Some Adani Group companies are under the scanner of the Securities and Exchange Board of India (Sebi) and the Directorate of Revenue Intelligence (DRI), Parliament was told on Monday. The Adani Enterprises stock closed at Rs 1,380.55 on the BSE, down 1.01% from the previous close.

“Sebi is investigating some Adani Group companies with regard to compliance with Sebi regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group of Companies under laws administered by it,” Union minister of state for finance Pankaj Chaudhary informed the Lok Sabha. He was responding to a question whether certain FPIs and/or Adani entities are under investigation various agencies/regulators.

Commenting on the issue, an Adani Group spokesperson said the conglomerate has always been compliant with Sebi regulations and it hasn’t received any request from the market regulator recently. On the DRI probe, the spokesperson said Adani Power was show-caused five years ago but the investigating agency had found “no over-valuation of equipment” and the matter is before the appellate tribunal.

“We have always been transparent with all our regulators and have full faith in them,” the spokesperson said. “While we have always been fully compliant with applicable Sebi regulations, we have made full disclosure to Sebi on specific information requests from them in the past. However, we have not received any communication or information requests recently.”

Chaudhary, however, did not disclose if any investigation was being carried out by the income tax authorities against the Adani firms, citing prohibition of disclosure of information regarding a specific taxpayer. However, he said no such investigation is going on in the Enforcement Directorate (ED) with regard to Adani group firms.

“In a matter pertaining to issuances of Global Depository Receipt (GDR) by certain Indian listed companies, Sebi vide Order dated June 16, 2016 had directed depositories to freeze particular beneficiary accounts of certain foreign portfolio investors (FPIs) including Albula Investment Fund Ltd, Cresta Fund Ltd, and APMS Investment Fund Ltd. However, no Order in respect of other beneficiary accounts of these three FPIs has been passed by Sebi,” Chaudhary said.

FPIs, including Albula Investment Fund, Cresta Fund and APMS Investment Fund, are investors in some Adani group firms. “Six companies of the Adani Group are listed and traded on recognised stock exchanges in India. The holding of FPIs in these companies is based on day-to-day trading of shares and thus dynamic,” Chaudhary said.

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