Gautam Adani Shares Big Fall: Shares of Gautam Adani fell face to face: in 6 out of 4 companies: The problems of Gautam Adani are not taking the name of decreasing. Some time back it was reported that accounts of some FPIs have been frozen, who have invested heavily in Adani’s companies. After that news, shares of Gautam Adani’s companies saw a decline for several consecutive days. Right now the condition of the shares of his company was somewhat stable that the news of investigation of these companies by ED started coming. The government made it clear that these companies are being investigated by SEBI and DRI, not ED. After this news, the lower circuit has started again in Adani’s companies.
Lower circuit installed in 4 out of 6 companies
As soon as the stock market opened on Tuesday, 3 out of 6 companies of Adani got lower circuit. A few minutes later, another company touched the lower circuit. The other two companies also continued to decline. As soon as the market opened on Tuesday, the shares of Adani Transmission, Adani Total Gas Limited and Adani Green took the lower circuit and after some time Adani Power also touched the lower circuit.
What was the news?
Markets regulator SEBI (SEBI) and Directorate of Revenue Intelligence (DRI) are probing some companies of the Adani Group. These companies are accused of violating the rules. Minister of State for Finance Pankaj Choudhary told this to the Parliament on Monday. He did not specify which companies of the Adani group were being probed. It is not yet known when SEBI has started the investigation. Pankaj Chaudhary gave this information in response to a question by TMC MP Mahua Moitra. After this statement, there was a fall in the shares of Adani Group companies.
Why are the shares of Adani companies falling?
The reason for this huge drop is the action taken by NSDL. National Securities Depository Ltd has frozen the accounts of three foreign funds Albula Investment Fund, Cresta Fund and APMS Investment Fund. He holds more than Rs 43,500 crore shares in 4 companies of the Adani Group. According to the NSDL website, these accounts were frozen on or before May 31. However, Gautam Adani had denied the news of any account freezing.
Understand the meaning of account freeze
An official said that usually custodians warn their clients about such action, but if the fund does not respond to this or does not follow it, then the accounts can be frozen. Freezing the account means that the fund cannot sell any existing securities or buy new ones. Emails sent to NSDL, SEBI and Adani Group in this regard did not elicit any response. Albula Investment Fund, Cresta Fund and APMS Investment Fund could not be contacted. These three funds are registered with SEBI as Foreign Portfolio Investors and operate out of Mauritius. All three are registered at the same address in Port Louis and do not have a website.
probe into stock price manipulation
In 2019, the capital markets regulator made KYC documentation for FPIs as per PMLA. The funds were given time to comply with the new rules till 2020. SEBI said that the accounts of funds that do not comply with the new rules will be frozen. According to the new rules, FPIs had to provide some additional information. These included disclosure of common ownership and personal details of key employees such as fund managers. It is believed that SEBI is also probing the price manipulation of shares of Adani Group companies. In the last one year, the shares of these companies have seen a jump of 200 to 1000 percent. An expert in the matter said that SEBI had started the investigation in this matter in 2020 which is still going on. SEBI did not respond to queries sent to it in this matter.