The Directorate of Revenue Intelligence (DRI) and market regulator Securities and Exchange Board of India (Sebi) are investigating several Adani Group businesses for regulatory violations. Pankaj Chaudhary, Minister of State for Finance, acknowledged the development in a written statement to the Lok Sabha. He was responding to TMC MP Mahua Moitra's queries.
Chaudhary further emphasised that the Enforcement Directorate (ED) is not investigating firms that have FPIs based on day-to-day share trading. According to the finance ministry, the Adani Group's six firms are listed and traded on recognised stock markets in India. Foreign Portfolio Investors' (FPIs') holdings in these firms are based on day-to-day trading of shares and therefore dynamic. Moitra has requested that the ministry give information on the ultimate beneficial ownership of Foreign Portfolio Investors (FPIs) who possess stakes in Adani Group firms in terms of market capitalization, ownership of key assets, and for the benefit of regular investors. Sebi is looking into several Adani Group firms for non-compliance with SEBI regulations. Furthermore, the Directorate of Revenue Intelligence (DRI) is examining various Adani Group of Companies companies under laws managed by it,” the ministry stated.
Stocks of Adani Group firms fell after the minister's remarks in Parliament. Adani Enterprises, the flagship listed business of billionaire Gautam Adani's empire, has dropped more than 2.40 percent.
Following the development, all other listed businesses — Adani Power, Adani Green Energy, Adani Gas, Adani Transmission, and Adani Ports and Special Economic Zone — dropped on the stock markets. Shares of Adani Group companies fell sharply last month after a report claimed that the National Securities Depository Limited had blocked three FPI accounts with substantial stakes in a handful of the conglomerate's listed companies (NSDL). Soon after the June 14 news, all six listed Adani Group companies plummeted and reached lower circuits. In a statement published the same day, Adani Enterprises disputed the report, and NSDL later confirmed that no new action had been taken against the three FPI accounts — Albula Investment Fund, Cresta Fund, and APMS Investment Fund. However, Adani Group shares fell for at least a week before beginning to recover. According to the article, the market regulator intends to launch a regulatory investigation into the incident. "However, we have not lately received any contact or information demands," the statement said.
In reference to the DRI investigation, Adani Group stated that a show-cause notice was given to Adani Power around five years ago.
Following that, DRI issued a ruling in Adani Power's favour, certifying that there is no overvaluation of equipment. "The department has contacted the Tribunal, and the case is currently under judicial review," the Adani Group said in a statement.