A dozen Adani offshore investors found flouting disclosure rules, investment limits

Sebi has reportedly found a dozen offshore funds invested in Adani group companies in violation of disclosure rules and breach of investment limits.

The offshore funds, Reuters claimed quoting sources, were reporting their investment in Adani group companies at individual fund level.

Sebi wanted the disclosure of holding at offshore fund group level, the report added. BT could not independently verify the report.

SEBI had earlier uncovered violation of rules on disclosures by listed entities and limits on the holdings of offshore funds in August last year.

The regulator is also said to be 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 Adani has rejected in the past.

The regulator earlier this year sent notices to a dozen Adani group's offshore investors outlining the charges and asking them to explain their positions on the disclosure violations and breach of investment limits, the report added.

Eight of these offshore funds have approached the regulator via written request to settle the charges by paying a penalty without admission of guilt, the sources quoted in the report added.

Meanwhile, Adani Ports and SEZ is expected to post a 137.4% change in its reported profit after tax (PAT) on a year on year basis on account organic volume growth and a boost from consolidation of Karaikal Port, states a report from Kotak Institutional Equities.

The Group had recently released around Rs 26,500 crore of pledged shares in fiscal 2024 across its five listed companies, marking the fourth straight year of such releases. Analysts attribute this trend to improved cash earnings, following similar releases of over Rs 15,000 crore each in FY23 and FY22 and Rs 1.27 lakh crore in FY21. n FY24, Adani Power witnessed the largest release of promoter-pledged shares, followed by Adani Ports & SEZ and Adani Green Energy Ltd. In March 2023, Adani Power had pledged 72.72 crore promoter shares, which has now reduced to 44.56 crore, marking a release of around 28.16 crore shares valued at Rs 15,000 crore.