Of the 13 foreign portfolio investors (FPI) flagged by SEBI for failing to maintain and disclose information about their ultimate beneficial owners in listed Adani entities, 8 are looking to settle securities violation matters with the markets regulator, The Economic Times reported.
The legal representatives of Albula Investment Fund, Cresta Fund, MGC Fund, Asia Investment Corporation (Mauritius), APMS Investment Fund, Elara India Opportunities Fund, Vespera Fund and LTS Investment Fund - have filed a total of 16 settlement applications with Sebi, the report stated citing people familiar with the matter. The show cause notices were issued in February 2024, the report said.
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Several other FPIs that also owned stocks of Adani Group companies and were accused of violations by SEBI are planning to submit settlement applications, the people cited in the story said.
The matter dates to October 2020, when Sebi launched an investigation into the shareholding structures of Adani Group companies. This move came after the market regulators' internal surveillance system flagged concerns about the high concentration of certain foreign holdings in the conglomerate's listed entities. The key question was whether these overseas investors were acting as proxies for promoters or were genuine public shareholders.
The regulator identified a total of 13 Foreign Portfolio Investors (FPIs) for scrutiny, including the eight previously mentioned and five others -- Emerging India Focus Funds, EM Resurgent Fund, Polus Global Fund, New Leaina Investments, and Opal Investments. However, the investigation came to a standstill as SEBI struggled to determine the ultimate beneficial owners of these FPIs and their potential connections to the Adani Group.
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