SEBI, DRI investigating Adani group companies over regulatory compliance, says MoS Finance Pankaj Chaudhary in Parliament

Most of the Adani Group shares were trading in red after Minister of State for Finance Pankaj Chaudhary said in Parliament that the SEBI (Securities and Exchange Board of India) is probing some entities of the Adani group about compliance with the SEBI regulations. 

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As on Monday, 3:05 pm, Adani Ports shares were trading down 2.07 per cent at RS 673, down Rs 14, while the stocks of Adani Power ltd was trading at Rs 101.80, down Rs 3.85 or 3.64 per cent. Similarly, Adani Total Gas Ltd shares were down over 4 per cent at Rs 859, down Rs 37.55.  

"SEBI is investigating some Adani Group companies with regard to compliance with SEBI Regulations. Further, the Directorate of Revenue Intelligence (DRI) is also investigating certain entities belonging to the Adani Group of Companies under laws administered by it," said Pankaj Chaudhary in the Parliament on Tuesday.  

He informed the House that six companies of the Adani Group are listed and traded on recognized stock exchanges in India. "The holding of Foreign Portfolio Investors (FPIs) in these companies is based on day-to-day trading of shares and thus dynamic." 

The minister, however, denied about any investigation under Income Tax Act, 1961. As far as investigation under Income Tax Act, 1961 is concerned, disclosure of information regarding specific taxpayer is prohibited except as provided under Section 138 of Act, he said. "No such investigation is going on in the Enforcement Directorate (ED)," the minister added.  

In a matter pertaining to issuances of Global Depository Receipt (GDR) by certain Indian listed companies, SEBI vide Order dated June 16, 2016 had directed depositories to freeze particular beneficiary accounts of certain FPIs including Albula Investment Fund Ltd., Cresta Fund Ltd., and APMS Investment Fund Ltd. "However, no Order in respect of other beneficiary accounts of these three FPIs has been passed by SEBI," the minister clarified.