Adani offshore investors broke Sebi rules: Report

MUMBAI: Markets regulator Sebi found that a dozen offshore funds invested in Adani Group companies were in violation of disclosure rules and in breach of investment limits, two people with direct knowledge of the matter said on Monday.
They declined to be named as they are not authorised to speak to the media. Sebi and Adani Group did not immediately respond to emailed requests for comment.
Reuters had first reported that Sebi has uncovered violation of rules on disclosures by listed entities and limits on the holdings of offshore funds in Aug last year.The regulator was also looking into Adani Group’s ties with one of the funds to determine whether it could be seen acting “in concert” with the conglomerate’s key shareholders, an accusation the group has rejected in the past.
The regulator sent notices to a dozen of Adani Group’s offshore investors earlier this year, outlining the charges and asking them to explain their positions on the disclosure violations and breach of investment limits, the sources said.
“The offshore funds were reporting their investment at an individual fund level. Regulator wanted the disclosure of holding at offshore fund group level,” said the first of the two sources. Eight of the funds have approached the regulator to settle the charges by paying a penalty without admission of guilt, the sources added.

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