Indian securities regulator and customs authorities are investigating some Adani Group companies for failing to comply with regulations, Minister of State for Finance Pankaj Chaudhary told Parliament on Monday. It was unclear when the Securities and Exchange Board of India (SEBI) or the Directorate of Revenue Intelligence (DRI) launched the investigation,
Pankaj Chaudhary, the minister, did not name the companies involved.
Shares of Adani group companies, which operate airports and ports, power generation and transmission, coal and gas trading, closed between 1.1%-4.8% lower on Monday. ‘SEBI is looking into the compliance of some Adani Group companies with SEBI regulations. In addition, the Directorate of Revenue Intelligence (DRI) is looking into certain Adani Group entities’ According to Mr. Chaudhary.
Stocks in companies controlled by billionaire Gautam Adani fell to new lows in the week ending June 18 after the Economic Times reported that three Mauritius-based foreign investors in Mr Adani’s companies had their accounts frozen.
In the five weeks since the Economic Times report, shares in the six Adani companies have fallen between 12.9 percent and 44.9 percent. Even after Mr Adani rejected the article as ‘blatantly erroneous,’ the stocks have lost over $37.6 billion in just over a month since the Economic Times report.
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