The Congress on Tuesday asked National Securities Depository Ltd (NSDL) and Securities and Exchange Board of India (Sebi) to place before the nation full facts about the Mauritius-based overseas funds that had invested in the Adani group and whose demat accounts are reported to have been frozen.
Congress spokesperson Gourav Vallabh said: “The NSDL and Sebi should come out with a complete disclosure about the nature of these funds, ultimate beneficial ownership of these funds, the findings of their inquiry (if any), what securities these funds hold and why were their accounts frozen? We also ask the government to order an investigation by the Enforcement Directorate if the Sebi’s ongoing investigation has revealed any irregularities with regard to price manipulation of Adani group stocks.”
Referring to reports about the NSDL freezing the demat accounts of three overseas funds — Albula Investment Fund, Cresta Fund and APMS Investment Fund — that have invested in Adani group companies, Vallabh said: “Why has the NSDL, which is under the jurisdiction of the ministry of finance, not come out with a public statement in the middle of all the confusion, whether accounts of these funds pertaining to their investments in the Adani group companies have been frozen and which ones are active? The Sebi and NSDL should reveal the nature and background details of these three foreign funds, who are the ultimate beneficial owners of these funds that have greater than 95 per cent of their net worth due to Adani shares only, and what have the Sebi and NSDL uncovered already about these funds?”
Adani Enterprises on Monday afternoon said the demat accounts through which these funds held their investments in the group’s companies had not been frozen.
“Why three other Adani group companies, where these funds have an investment, have not come out with a statement?” Vallabh asked. These three funds together own over Rs 43,500 crore worth of shares in four Adani group companies, he added.
Pointing out that these funds are all registered at the same address in Port Louis, Mauritius, but do not have websites, Vallabh said: “These funds derive more than 95 per cent of their net worth from their investments in the Adani group companies. As per Sebi guidelines, a foreign portfolio investor (FPI) can’t hold more than 10 per cent equity stake in any listed Indian firm. It is important to understand the ultimate beneficial ownership of these funds as they all have the same address and don’t even have websites that raises the suspicion further.”