Investors of Adani Group are a disappointed lot so far on Monday as shares of the companies plunged and dragged down the benchmark indices. Adani Group stocks, including Adani Enterprises, Adani Power, Adani Green Energy, Adani Ports, Adani Total Gas, and Adani Transmission, hit a lower circuit of 20 per cent on Monday.
Adani Ports and Adani Enterprises were both down 13 per cent, while Adani Power, Adani Transmission, and Adani Green Energy plunged by 5 per cent each. Adani Total Gas is also down 5 per cent.
The stocks fell on report that the National Securities Depository Ltd (NSDL), India securities depository, has frozen the accounts of three foreign funds—Albula Investment Fund, Cresta Fund and APMS Investment Fund—which together own over Rs 43,500 crore worth of shares in four Adani Group companies. As a result, the funds would not be able to sell any of the existing securities nor buy any new securities.
These accounts were frozen on or before May 31, The Economic Times reported citing the depositorys website.
The report said, citing an official, that the NSDLs move could be because of insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act (PMLA). Typically, the accounts are frozen if the clients do not take any action despite being notified.
The three funds, all based in Mauritius capital of Port Louis, together hold 6.82 per cent in Adani Enterprises, 8.03 per cent in Adani Transmission, 5.92 per cent in Adani Total Gas, and 3.58 per cent in Adani Green.
It is also to be noted that securities market regulator Sebi is probing Adani Group stocks for price manipulation as the shares have gained between 200 per cent to 1000 per cent in just one year. Shares of Adani Transmission have risen by 669 per cent, while Adani Power is up by 295 per cent. Shares of Adani Enterprises soared a whopping 972 per cent, while Adani Ports, Adani Total Gas and Adani Green advanced 147 per cent, 349 per cent and 254 per cent. The total market capitalisation of Adani Group was Rs 9.5 lakh crore, as on Friday.
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