Why Adani Group shares are tumbling down⁠ — details here

Jun 14, 2021

By: BI India Bureau

Shares of all the six listed Adani Group companies hit their...

...respective lower circuits in the first hour of trading on June 14.

Credit: BCCL

Accounts of three foreign funds with over ₹43,000 crore invested in Adani Group companies have been suspended.

Credit: BCCL

Market regulator SEBI is reportedly investigating if Adani Group companies’ share price has been manipulated.

Credit: BCCL

All three funds that have been suspended are based out of Mauritius and have the same address.

Credit: BCCL

The funds had time till 2020 to disclose details on common ownership...

...and personal details of key employees. But they didn’t.

Credit: BCCL

Indian fund managers can’t invest in any one stock or group beyond a certain limit.

But the same rule does not apply for foreign portfolio investors.

Credit: BCCL

These funds hoarding Adani group shares may have led to reducing the...

...number of tradable shares in the market, and perhaps inflated their value.

Credit: BCCL

The other fear is that this may be a case of round tripping of money.

Credit: BCCL

Roundtripping refers to a case whereby Indian investors may be investing ...

...via another country, to bypass the local rules. It is not proven yet.

Credit: BCCL

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