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Sebi asks foreign funds for information on ultimate beneficial owners in Adani firms: Report

The market regulator is looking at the structure of these foreign funds to ensure compliance with regulations

July 28, 2021 / 01:26 PM IST

The Securities and Exchange Board of India (Sebi) has asked custodians of foreign portfolio investors (FPIs) that hold a stake in six Adani Group stocks to reveal information on their ultimate beneficial owners (UBO), reported Business Standard.

According to the report, Sebi had asked custodians of these foreign funds to provide information on UBOs, both on the basis of ‘control’ and ‘ownership’ last week, giving them 15 days to revert.

The market regulator is looking at the structure of these foreign funds to ensure compliance with regulations, the report added, quoting sources.

"We are not aware of any communication from Sebi to the custodians with regard to the matter. This is pertaining to the relevant FPIs and the regulator should be in a better position to offer the desired clarification," a spokesperson of Adani Group told BS.

Moneycontrol could not independently verify the report.

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These funds include Albula Investment Fund, Cresta Fund, and APMS Investment Fund which were allegedly frozen by the National Securities Depository Ltd (NSDL) in June. However, NSDL later clarified that the freeze pertained to older cases dating back to 2016.

The bulk of these foreign holdings in Adani listed entities is concentrated in Adani Ports and Special Economic Zone, Adani Enterprises, Adani Green Energy, Adani Power, Adani Transmission, and Adani Total Gas.

Last week, the government informed Parliament that several Adani group companies were being investigated by Sebi and the Directorate of Revenue Intelligence (DRI).

"SEBI is investigating some Adani Group companies with regard to compliance with SEBI Regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group of Companies under laws administered by it," said Minister of State for Finance Pankaj Chaudhar in a written response to Parliament on July 19.

According to the latest shareholding data, Albula Investment Fund holds 1.56 percent stake in Adani Transmission, 1.96 percent stake in Adani Enterprises, 1.31 percent stake in Adani Total Gas, and 1.24 percent in Adani Green Energy.

Cresta Fund holds 3.21 percent stake in Adani Transmission as of June 2021 quarter, 1.57 percent stake in Adani Enterprises, and below 1 percent in Adani Total Gas. Meanwhile, APMS Investment Fund holds a 2.7 percent stake in Adani Total Gas, 2.3 percent stake in Adani Green Energy, 1.9 percent stake in Adani Transmission, and 1.7 percent stake in Adani Enterprises.
Moneycontrol News
first published: Jul 28, 2021 01:26 pm
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