A day after a global network of investigative journalists stated that the business had used foreign persons and funds in tax havens to invest in its own shares and breached Sebi's minimum shareholding standards, the majority of the Adani group's shares recovered, climbing as much as 2.8%.
Organized Crime and Corruption Reporting Project (OCCRP) had alleged that Adani Group had used layered fund structures to evade regulatory scrutiny with Vinod Adani, brother of group chairman Gautam Adani, and his two foreign associates, leading the whole operations. The group had junked the report, calling it ‘recycled allegations’.
ED finds suspicious activities by 16 entities in Adani case
The ED has looked into the connections between an Indian private bank and 15 other organisations, including foreign portfolio investors (FPIs) whose beneficial ownership is now unknown, in the matter involving the short sale of shares of Adani group firms earlier this year.
In the lead-up to the January 24 release of the Hindenburg research report, the agency shared its information regarding these 16 entities with market regulator Securities and Exchange Board of India (Sebi), which is looking into the suspicious short selling positions taken by some entities against Adani group shares.