NSDL seized 43,500 crore of Adani Groups under Foreign Fund Laundering Act

New Delhi: Gautam Adani, who became the second-highest rich in India and Asia during Modi government, has suffered a setback of Rs 43,500 crore. National Securities Depository Limited (NSDL) has frozen the accounts of three foreign funds Albula Investment Fund, Cresta Fund and APMS Investment Fund. He has shares worth more than Rs 43,500 crore in 4 companies of the Adani Group.

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According to the NSDL website, these accounts were frozen on or before May 31. After this news, there is a huge decline in the companies of Adani Group in the Indian stock market.

5 out of 6 Adani companies got lower circuit after this news. All three have 6.82 per cent stake 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.

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According to law firms handling custodian banks and foreign investors, these foreign funds did not give complete details about the beneficial ownership. Because of this their accounts have been frozen. Under the Prevention of Money Laundering Act (PMLA), it is necessary to give complete information about Beneficial Ownership.

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Usually, custodians warn their clients about such action but if the fund does not respond or does not comply with this, then the accounts can be frozen.

Freezing the account means that the fund cannot sell or buy any existing securities. Emails sent to NSDL, SEBI and Adani Group in this regard did not elicit any response.

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Albula Investment Fund, Cresta Fund and APMS Investment Fund could not be contacted. These three funds are registered with SEBI as Foreign Portfolio Investors and operate out of Mauritius. All three are registered at the same address in Port Louis and do not have a website.

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In 2019, the capital markets regulator made KYC documentation for FPIs as per PMLA. The funds were given time to comply with the new rules till 2020.

SEBI said that the accounts of funds that do not comply with the new rules will be frozen. According to the new rules, FPIs had to provide some additional information. These included disclosure of common ownership and personal details of key employees such as fund managers.

Adani Transmission has gained 669 per cent, Adani Total Gas 349 per cent, Adani Enterprises 972 per cent and Adani Green 254 per cent in the last one year.

Similarly, the shares of Adani Ports and Adani Power have gained 147 per cent and 295 per cent respectively. Adani Group’s total market cap on Friday stood at Rs 9.5 lakh crore, making the group’s chairman Gautam Adani Asia’s second-largest rich.

The promoter group holds 74.92 per cent in Adani Transmission, 74.92 per cent in Adani Enterprises, 74.80 per cent in Adani Total Gas and 56.29 per cent in Adani Green.

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Mak Dell

Mak Dell Indian journalist is news publisher from desktop. Please contact newsreaders.in@gmail.com or whatsapp +91-9198-624-866 for any issues. Our head office is in Gomtinagar, Lucknow (UP) India.

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