Certain Adani Group companies are being investigated by Securities and Exchange Board of India over compliance with rules, according to a written reply to a question in Parliament.
“The Directorate of Revenue Intelligence is also investigating certain entities belonging to the Adani Group under laws administered by it,” Pankaj Chaudhary, minister of state for finance, said in a written reply to question from Lok Sabha MP Mahua Moitra.
He said the holding of foreign portfolio investors in six publicly traded Adani companies is based on day-to-day trading of shares and is “dynamic”.
Earlier this month, Gautam Adani had hit out at “reckless and irresponsible reporting” by a few media houses related to the freezing of the accounts of three foreign portfolio investors—Albula Investment Fund, Cresta Fund and APMS Investment Fund—that together own Rs 42,000 crore worth of shares in his group companies.
He had said that the “twisted narrative” affected some of his companies’ small investors. Despite the conglomerate’s swift denial of such reports, a stock rout shaved nearly $13 billion off Gautam Adani’s net worth in about four days in June.
Shares tumbled on Monday after the minister’s comments.
Adani Total Gas Ltd. extended decline to its daily 5% limit.
Adani Power Ltd. fell as much as 4.9%, the most since July 2. Adani Transmission Ltd., Adani Enterprises Ltd. and Adani Green Energy Ltd. all fell between 2.6% and 3.5%.
Adani Ports and Special Economic Zone Ltd. extended drop to 3.8%, before paring some losses.