{"id":28625,"date":"2023-08-31T21:10:09","date_gmt":"2023-08-31T15:40:09","guid":{"rendered":"https:\/\/madhyapradeshhindiexpress.com\/?p=28625"},"modified":"2023-08-31T21:10:09","modified_gmt":"2023-08-31T15:40:09","slug":"adani-shares-fall-after-report-alleging-overseas-investors-ties-to-promoters","status":"publish","type":"post","link":"https:\/\/madhyapradeshhindiexpress.com\/?p=28625","title":{"rendered":"Adani shares fall after report alleging overseas investors\u2019 ties to promoters"},"content":{"rendered":"

Adani Group companies\u2019 shares fell on Thursday, with the flagship Adani Enterprises sliding as much as 5%, in the\u00a0wake of a report by the Organized Crime and Corruption Reporting Project\u00a0<\/a>(OCCRP) that sought to affirm earlier allegations of share price manipulation by people close to the promoters.<\/p>\n

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In a statement, the Adani Group rejected the allegations and termed them \u201cmischievous and malicious\u201d.<\/p>\n

The OCCRP, a global network of investigative journalists, alleged in its report released on Thursday that documents obtained by the reporters show that \u201ctwo men who spent years\u00a0trading hundreds of millions of dollars\u2019 worth of Adani Group stock: Nasser Ali Shaban Ahli and Chang Chung-Ling,\u00a0had close ties to the Adani family, including appearing as directors and\u00a0shareholders in affiliated companies\u201d.<\/p>\n

\u201cRecords show that the investment funds they used to trade in Adani Group stock received instructions from a company controlled by a senior member of the Adani\u00a0family the OCCRP said in its report.<\/p>\n

Shares of Adani Enterprises had pared losses and were trading 2.3% lower on the BSE at \u20b92,457 as of 12:49 p.m. Adani Ports & Special Economic Zone Ltd. was also down 2.3% while Adani Power was 2.9% lower and Adani Green Energy was down 3.4%.<\/p>\n

\u201cThese news reports appear to be yet another concerted bid… to revive the meritless Hindenburg report,\u201d the Adani Group said in its statement, referencing the January report by U.S.-based Hindenburg Research, in which the short seller had alleged that the Indian conglomerate had indulged in corporate fraud and share price manipulation.<\/p>\n

\u201cThese claims are based on closed cases from a decade ago when the Directorate of Revenue Intelligence (DRI) probed allegations of over invoicing, transfer of funds abroad, related party transactions and investments through FPIs (foreign portfolio investors),\u201d the Adani Group asserted.<\/p>\n

\u201cThe matter attained finality in March 2023 when the Hon\u2019ble Supreme Court of India ruled in our favour. Clearly, since there was no over-valuation, there is no relevance or foundation for these allegations on transfer of funds,\u201d the group said, adding that these FPIs were already part of the investigation by the Securities and Exchange Board of India (SEBI). \u201cAs per the Expert Committee appointed by the Hon\u2019ble Supreme Court, there is no evidence of any breach of the Minimum Public Shareholding (MPS) requirements or manipulation of stock prices,\u201d the group asserted.<\/p>\n

\u201cWe have complete faith in the due process of law and remain confident of the quality of our disclosures and corporate governance standards. In light of these facts, the timing of these news reports is suspicious, mischievous and malicious – and we reject these reports in their entirety,\u201d the Adani Group added.<\/p>\n

\u2018Mauritius route\u2019<\/h4>\n

As per the OCCRP\u2019s allegations, documents show how hundreds of millions of dollars were invested in publicly traded Adani stock through opaque investment funds based in Mauritius.<\/p>\n

\u201cIn at least two cases \u2014 representing Adani stock holdings that at one point reached $430 million \u2014 the mysterious investors turn out to have widely reported ties to the group\u2019s majority shareholders, the Adani family,\u201d the reporters\u2019 collective alleged in its report.<\/p>\n

\u201cThe documents show that, through the Mauritius funds, they spent years buying and selling Adani stock through offshore structures that obscured their involvement \u2014 and made considerable profits in the process. They also show that the management company in charge of their investments paid a Vinod Adani company to advise them in their investments,\u201d the OCCRP said in its report.<\/p>\n

\u201cThe question of whether this arrangement was a violation of the law rests on whether Ahli and Chang should be considered to be acting on behalf of Adani \u201cpromoters,\u201d a term used in India to refer to the majority owners of a business holding and its affiliated parties.<\/p>\n

\u201cIf so, their stake in the Adani Group would mean that insiders altogether owned more than the 75% allowed by law,\u201d it added.<\/p>\n

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\"Adani
Adani shares fall after report alleging overseas investors\u2019 ties to promoters<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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