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NEW DELHI: Securities and Exchange Board of India (Sebi) is currently conducting an inquiry into the association between the Adani Group and a fund established in the British Virgin Islands. The purpose of the probe is to determine whether there has been a breach of share ownership regulations.
What
India’s market regulator is investigating the relationship between the Adani Group and a fund incorporated in the British Virgin Islands to see if there has been a violation of share ownership rules, reported news agency Reuters citing sources with direct knowledge of the matter.
The fund is called Gulf Asia Trade & Investment, which is owned by Dubai businessman Nasser Ali Shaban Ahli, according to checks of its website last month although the site has since been pulled down.
A larger probe
The fund has invested in several listed Adani firms, according to the Organised Crime and Corruption Reporting Project (OCCRP) and data that the investigative journalist group has provided to Reuters.
News reports on alleged links between the Adani group and shell companies based on the OCCRP report surfaced last month.
The probe is part of the Securities and Exchange Board of India’s investigation into the Indian conglomerate which follows a January report by short-seller Hindenburg Research that said offshore shell companies “surreptitiously” owned stock in Adani listed firms, posing governance concerns.
Tell me more…
A key question for Sebi investigators is whether Gulf Asia’s ties with the Adani Group were such that it would be deemed to be acting “in concert” with key Adani shareholders, said the unidentified sources quoted by Reuters.
The conglomerate has previously said it categorically rejects allegations by OCCRP that there was an “opaque use” of funds by business partners to invest in its listed companies. It has also denied allegations made by Hindenburg, saying all transactions made with entities that qualified as related parties had been fully disclosed.
What
India’s market regulator is investigating the relationship between the Adani Group and a fund incorporated in the British Virgin Islands to see if there has been a violation of share ownership rules, reported news agency Reuters citing sources with direct knowledge of the matter.
The fund is called Gulf Asia Trade & Investment, which is owned by Dubai businessman Nasser Ali Shaban Ahli, according to checks of its website last month although the site has since been pulled down.
A larger probe
The fund has invested in several listed Adani firms, according to the Organised Crime and Corruption Reporting Project (OCCRP) and data that the investigative journalist group has provided to Reuters.
News reports on alleged links between the Adani group and shell companies based on the OCCRP report surfaced last month.
The probe is part of the Securities and Exchange Board of India’s investigation into the Indian conglomerate which follows a January report by short-seller Hindenburg Research that said offshore shell companies “surreptitiously” owned stock in Adani listed firms, posing governance concerns.
Tell me more…
A key question for Sebi investigators is whether Gulf Asia’s ties with the Adani Group were such that it would be deemed to be acting “in concert” with key Adani shareholders, said the unidentified sources quoted by Reuters.
The conglomerate has previously said it categorically rejects allegations by OCCRP that there was an “opaque use” of funds by business partners to invest in its listed companies. It has also denied allegations made by Hindenburg, saying all transactions made with entities that qualified as related parties had been fully disclosed.
#Sebi #expanding #scope #probe #Adani #Group
