Skip to content 
Search

Latest Stories

Indian regulator probes Adani's links to investors as Modi's office is briefed

The Securities and Exchange Board of India (SEBI) is looking into any potential violation of Indian securities laws or any conflict of interest in the share sale process, said the two sources who have direct knowledge of the matter.

Indian regulator probes Adani's links to investors as Modi's office is briefed

India's market regulator is investigating Adani Group's links to some of the investors in the conglomerate's aborted $2.5 billion share sale, two sources said, amid growing concern in New Delhi about a U.S. short-sellers allegations against one of the country's top industrial groups.

The Securities and Exchange Board of India (SEBI) is looking into any potential violation of Indian securities laws or any conflict of interest in the share sale process, said the two sources who have direct knowledge of the matter.


The watchdog is investigating relationships between Adani and at least two Mauritius-based firms -- Great International Tusker Fund and Ayushmat Ltd. -- which participated as anchor investors, among others, said the sources, who spoke on the condition of anonymity due to the confidential nature of the probe.

Under India's capital and disclosure requirement rules, any entity related to a company's founder or the founder group is ineligible to apply under the anchor investor category. One of the sources said the focus of the probe would be whether any of the anchor investors are "connected" to the founder group.

The ports-to-energy conglomerate -- controlled by billionaire Gautam Adani, one of the world's richest people -- has seen shares in its seven companies lose more than $100 billion in market value since the Jan. 24 report by Hindenburg Research, which accused it of improper use of offshore tax havens and stock manipulation. Adani has denied the charges. Last week, the group's flagship entity Adani Enterprises ADEL.NS pulled its secondary share offering, India's largest ever, because of the sharp selloff.

SEBI and the Adani Group did not respond to requests for comment about the investigation. Great International Tusker Fund and Ayushmat Ltd. also did not respond to requests for comment.

Also under the SEBI scanner are Elara Capital and Monarch Networth Capital, two of the 10 investment banks that managed the share offering, the sources said, adding that SEBI had approached the two firms last week.

The roles of Elara and Monarch are being examined by the market watchdog to rule out "any conflict" in the share offering process, one of the sources said.

Shares in Adani Enterprises extended their losses to 5% in Friday afternoon trade following Reuters' report, having previously been down 2.5% earlier in the day.

MEETING WITH MODI'S OFFICE

Hindenburg has alleged one Adani private entity had a small ownership stake in Monarch - which has previously worked as a bookrunner for the group - saying "this close relationship seems to pose an obvious conflict of interest." The short-seller also alleged that a Mauritius-based fund of Elara has invested 99% of its market value in three Adani stocks.

Adani has said Monarch was selected for previous share sales "for their credentials and ability to tap into the retail market". On Elara, Adani has said "innuendoes" that the firm was in any manner related to the conglomerate founders were incorrect.

When contacted, Monarch referred Reuters to an exchange disclosure on Feb. 3 that said an Adani entity has held "an insignificant", 0.03%, stake in the company since 2016. Reuters was unable to confirm this from public records. Elara did not respond to a request for comment on the regulator's probe and Hindenburg's allegations.

In recent days, the fallout of the allegations by Hindenburg, which stood to profit from the fall in the value of Adani Group assets, has come up repeatedly as a cause for concern at the national level, including at Prime Minister Narendra Modi's office, two government officials said.

Opposition parties have protested in parliament to call for an independent probe into Hindenburg's allegations.

The federal corporate affairs ministry, responsible for regulating Indian businesses, has briefed officials in Modi's office and been in touch with SEBI, the market regulator, one of the officials said. Reuters could not determine the specific details of these discussions, which have not been previously reported.

The ministry launched a review of Adani's past financial statements on Feb. 2.

Modi's office and India's Ministry of Corporate Affairs did not respond to requests for comment about the regulatory probe into Adani after the publication of the Hindenburg report.

The conglomerate has previously said Hindenburg's allegations of stock manipulation had "no basis" and stemmed from ignorance of Indian law. It has said it has always made the necessary regulatory disclosures. India's Finance Secretary T.V. Somanathan on Saturday described the Adani issue as a "storm in a teacup" from a macroeconomic perspective.

(Reuters)

More For You

Air India flight crash
Air India's Boeing 787-8 aircraft, operating flight AI-171 to London Gatwick, crashed into a medical hostel complex shortly after take-off from Ahmedabad on June 12.
Getty Images

Air India crash probe finds fuel to engines was cut off before impact

Highlights

 
     
  • Fuel to both engines of the Air India flight was cut off seconds before the crash
  •  
  • A pilot was heard questioning the other over the cut-off; both denied initiating it.
  •  
  • The Dreamliner crashed shortly after take-off from Ahmedabad, killing 260 people.
  •  
  • Investigators are focusing on fuel switch movement; full analysis may take months.

FUEL control switches to both engines of the Air India flight that crashed shortly after takeoff were moved from the "run" to the "cutoff" position seconds before the crash, according to a preliminary investigation report released early Saturday.

Keep ReadingShow less
Chinese vessel tracked in Bay of Bengal after disabling identification system

The Indian Navy and Coast Guard have consistently reported Chinese research vessel presence. (Representational image: Getty Images)

Chinese vessel tracked in Bay of Bengal after disabling identification system

A Chinese research vessel was detected operating in the Bay of Bengal near Indian waters while attempting to conceal its presence by disabling its Automatic Identification System (AIS), according to a report by The Economic Times, citing French maritime intelligence firm Unseenlabs.

The French company conducted a 16-day satellite-based survey tracking ships through radio frequency emissions. It monitored 1,897 vessels, with 9.6 per cent showing no AIS activity, indicating attempts to avoid detection. The survey raised concerns amid increased Chinese activity in the region.

Keep ReadingShow less
Asian-inspired garden earns
five awards at Hampton Court

(From left) Malcolm Anderson (RHS, head of sustainability) Clare Matterson (RHS director general), Lorraine Bishton (Subaru UK and Ireland, managing director) Andrew Ball (director, Big Fish Landscapes) Mike McMahon and Jewlsy Mathews with the medals

Asian-inspired garden earns five awards at Hampton Court

BRITISH Asians are being encouraged to take up gardening by a couple who have won a record five medals at the Royal Horticultural Society’s Hampton Court Palace Garden Festival.

“It’s a contemporary reimagining of a traditional walled garden, highlighting the British and Irish rainforests,” said Jewlsy Mathews, who was born in Britain of parents from Kerala, a southern Indian state known for its lush vegetation.

Keep ReadingShow less
uk weather

Amber heat health alerts have been issued across several regions of England

iStock

England faces widespread heat alerts and hosepipe bans amid rising temperatures

Highlights:

  • Amber heat health alerts in place for large parts of England
  • Hosepipe bans announced in Yorkshire, Kent and Sussex
  • Temperatures could reach 33°C over the weekend
  • Health risks rise, especially for elderly and vulnerable groups

Heat warnings in effect as UK braces for another hot weekend

Amber heat health alerts have been issued across several regions of England, with temperatures expected to climb to 33°C in some areas over the weekend. The UK Health Security Agency (UKHSA) activated the warning at 12 pm on Friday, with it set to remain in place until 9 am on Monday.

The alerts cover the East Midlands, West Midlands, south-east, south-west, East of England, and London. Additional yellow alerts were issued for the north-east, north-west, and Yorkshire and the Humber, starting from midday Friday.

Keep ReadingShow less
Essex ladybird invasion

One of the largest gatherings was filmed on a beach at Point Clear

Dee-anne Markiewicz / SWNS

Swarms of ladybirds invade Essex coastline amid soaring temperatures

Highlights:

  • Ladybird swarms reported across Essex and Suffolk coastal towns
  • Hot weather likely driving the sudden surge in population
  • Sightings include Point Clear, Shoebury, Clacton and Felixstowe
  • Similar outbreaks occurred in 1976 during another hot UK summer

Sudden surge in ladybird numbers across the southeast

Millions of ladybirds have been spotted swarming towns and villages along the Essex coast, with similar sightings stretching into Suffolk. Residents have reported unusually high numbers of the red and black-spotted insects, particularly near coastal areas, with the recent hot weather believed to be a major contributing factor.

One of the largest gatherings was filmed on a beach at Point Clear, a village near St Osyth in Essex, where the insects could be seen piling on top of each other on driftwood and plants.

Keep ReadingShow less