Adani Group company stocks including the likes of Adani Enterprises, Adani Transmission, Adani Total Gas, and Adani Green have all tumbled in early trade on June 14, 2021, to hit their lower circuit limit.
Adani Enterprises 10% lower circuit while last trading price Rs. 1441.45, Adani Transmission 5% lower circuit and last trading price Rs. 1522.5, Adani total Gas 5% lower circuit and last trading price Rs. 1544.9, As Adani Green 5% lower circuit and last trading price Rs. 1156.85 respectively.
This is after the depository NSDL has frozen the accounts of 3 foreign funds namely Albula Investment Fund, Cresta Fund, and APMS Investment Fund which on an overall basis own a sizable stake in these 4 Adani groups companies, worth over Rs 43,500 Crore.
As per the depository’s website, the accounts were frozen or before May 31 said the ET report. Further, the report quoted top officials at custodian banks and law firms managing foreign investors as saying “The freeze on the three accounts could be because of insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act (PMLA)”.
Adani Group is yet to issue a statement. All three funds, based out of Mauritius, are registered with the Securities and Exchange Board of India (SEBI) as foreign portfolio investors (FPIs). They together s in Adani Enterprises amounts to 6.83%, 8.03 per cent in Adani Transmission, 5.92 per cent in Adani Total Gas, and 3.58 per cent in Adani Green. As mentioned by daily. They are registered at the same address in Port Louis and don’t have websites, the daily reported.
The capital markets regulators had reworked the know your customer (KYC) documentation for FPIs. Funds were given time till 2020 to comply with the new norms. If they were to fail, their Demat accounts were to be frozen. The regulator sought additional information from FPIs, including disclosures on common ownership and personal details for key employees.