The National Securities Depository Ltd (NSDL) has frozen the accounts of three Foreign Portfolio Investors (FPI) - Albula Investment Fund, Cresta Fund and APMS Investment Fund - that together hold Rs 43,500 in four Adani Group companies. These accounts were frozen on or before May 31, as per the depository's website.
Adani Group stocks have plunged on June 14.
This would mean that the FPIs are now barred from selling or buying any new securities. The account freeze can be on the account of insufficient disclosure of information regarding beneficial ownership under the Prevention of Money Laundering Act (PMLA), a report in the Economic Times said, citing custodian officials. It added that the custodian usually issues a warning to the clients before taking such an action. The account is blocked only after non-compliance if the funds fail to respond.
Moneycontrol could not independently verify the report.
Reportedly, the three accounts are based out of Port Louis, the capital city of Mauritius and together hold 6.82 percent in Adani Enterprises, 8.03 per cent in Adani Transmission, 5.92 per cent in Adani Total Gas, and 3.58 percent in Adani Green.
The report further added that all the three funds, based out of Mauritius, are registered with the Securities and Exchange Board of India (SEBI) as FPIs.
Adani Group in a statement refuted the report and said that it deliberately misleading the investing community.
The statement added that the company has requested Registrar and Transfer Agent, with respect to the status of the Demat Account of the three foreign funds and have their written confirmation clarifying that the Demat Account in which the three funds hold the shares of the company are not frozen.
SEBI updated the know your customer (KYC) documentation for FPIs and allowed time till 2020 to comply with the new norms. The regulator sought additional information from FPIs, including disclosures on common ownership and personal details for key employees. The regulator had warned that non-compliance to the new norms will lead to a freeze on the accounts.
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