Adani Enterprises, Adani Green shares: Adani group stocks in focus amid report of Sebi probe

Adani group shares such as Adani Enterprises, Adani Green Energy, Adani Power, Adani Total Gas and Adani Transmission will in focus on Monday amid a Reuters report that suggested Sebi was looking into possible violation of 'related party' transaction rules in the Adani group's dealings with at least three offshore entities. These entities, the report suggested, are said to have links to Vinod Adani, Gautam Adani’s elder brother.

The Reuters report quoting sources with direct knowledge of the matter said the three entities allegedly entered into several investment transactions with unlisted units of the Adani Group over the last 13 years, adding that Vinod Adani is either a beneficial owner, director or has links with these three offshore entities. The market regulator is now probing whether lack of that disclosure violated 'related party transaction' rules, the report suggested.

The three offshore entities with alleged links to Vinod Adani being probed for 'related party' transactions are Mauritius-based Krunal Trade and Investments Ltd and Gardenia Trade and Investments Ltd, and Electrogen Infra in Dubai.

As per Indian laws, direct relatives, promoter groups, and subsidiaries of listed companies are considered related parties. A promoter group is defined as “an entity that has a large shareholding in a listed company and can influence company policy”.

Transactions between such entities have to be disclosed in regulatory and public filings at the bourses and require shareholder approval above a specified threshold. If such norms are violated, the involved companies can be asked to pay monetary fines.

An Adani Group spokesperson told Reuters that Vinod Adani is a member of the Adani family and is part of the promoter group, but he does not hold any managerial position in any of the listed Adani entities or their subsidiaries.

"This fact, like all other material information required to be reported, has been disclosed to the regulatory authorities in the past and also as and when required," the spokesperson said but did not comment on the Sebi probe into offshore entities.

Reuters reported that Vinod Adani could not be reached for comment. Besides, emails for comments sent to his holding company in Dubai, Adani Global Investment DMCC, did not receive a response. There was also no response from Krunal, Gardenia and Electrogen Infra to Reuter’s queries.

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