Adani Group shares tumble up to 6% amid reports of US regulatory scrutiny

The US Attorney's Office in Brooklyn, New York, has sent inquiries in recent months to institutional investors with large holdings in the India conglomerate, report.

Shares of Adani Group companies were under pressure, falling up to 6 per cent on the BSE in Friday’s intra-day trade following reports that the Group has drawn regulatory scrutiny in the US after short seller's report.

Shares of Adani Enterprises, the flagship company of Adani Group, dipped 6 per cent to Rs 2,251 on the BSE in intra-day trade.  Adani Ports and Special Economic Zone, Adani Power, Adani Total Gas, Adani Transmission, Adani Green Energy, Adani Wilmar, Ambuja Cements and ACC were down 2 per cent to 4 per cent. In comparison, the S&P BSE Sensex was down 0.28 per cent at 63,061 at 10:17 AM.

According to Bloomberg report, US authorities are looking into what representations Adani Group made to its American investors following a scathing short seller’s report that accused the company of using offshore companies to secretly manipulate its share prices.

The US Attorney’s Office in Brooklyn, New York, has sent inquiries in recent months to institutional investors with large holdings in the India conglomerate; Bloomberg reported quoting one person familiar with the inquiries. CLICK HERE FOR FULL REPORT

Meanwhile, the market regulator the Securities Exchange Board of India (SEBI) is conducting an investigation into allegations made by a foreign short-seller on January 25, 2023 and also into market activity before and after that date. The verdict is expected from securities watchdog in August.

However, a panel of experts appointed by the Supreme Court also said in a report last month that there’s no regulatory failure or wrongdoing behind the wild swings of Adani stocks.

“We are fully compliant with all laws, rules and regulations and are confident that truth will prevail. We are fully cooperating with SEBI and will continue to provide all our support and cooperation,” Adani Group had said in media statement on April 29.

It is pertinent to note that in the SEBI application filed before the Hon'ble Supreme Court, there are no conclusions of any alleged wrong-doing. The SEBI application only cites the allegations made in the short-sellers report, which are still under investigation, the Group said.

“While we continue to remain focused on our business and growth, we would request the media to avoid needless speculation at this time and wait for SEBI and the Expert Committee appointed by the Hon'ble Supreme Court to complete their work and submit their findings,” it added.