Junior finance minister told parliament on Tuesday that some of the Adani group companies are being probed by the country’s markets regulator.
After the junior finance minister told parliament on Tuesday that some of the Adani group companies are being probed by the country’s markets regulator over compliance with securities rules, the conglomerate’s companies fell for second day, denting Billionaire Gautam Adani’s fortune. Junior Finance Minister Pankaj Chaudhary, in a response to a lawmaker’s question in parliament on Monday, said besides the Securities and Exchange Board of India, Directorate of Revenue Intelligence, or DRI, is also “investigating certain entities” belonging to the Adani Group for compliance to another set of local laws. However, the minister didn’t elaborate on the investigations or name the Adani group companies being probed.
In early trading Tuesday, shares of all six listed Adani group companies slipped. In financial capital Mumbai, Adani Total Gas, Adani Transmission, Adani Green Energy and Adani Power declined by 5 per cent. Flagship Adani Enterprises sank by 3.2 per cent, while Adani Ports & Special Economic Zone dropped 2.6 per cent, compared with a 0.7 per cent drop in the benchmark S&P BSE Sensex during trading.
The minister’s comments come after a local media report last month that said accounts of three Mauritius-based funds, with a significant exposure to Adani Group stocks, were frozen by the national stock depository due to insufficient disclosures. Whil Adani strongly rejected the report, anxious investors stoked a stock rout that shaved billions of dollars off Adani companies’ market value.
In a statement on Monday, an Adani group spokesperson said: “We have always been transparent with all our regulators and have full faith in them.” According to the statement, the conglomerate has always complied with SEBI regulations and made full disclosures on “specific information requests” from the regulator in the past. It also added that the group had not received any communication or information requests recently.