## Sebi's Investigation into Adani Group and Offshore Funds
In August 2022, Reuters reported that the Securities and Exchange Board of India (Sebi) had discovered violations of disclosure rules by listed entities and offshore funds exceeding investment limits. This prompted an investigation into the Adani Group's relationship with one of the funds, specifically focusing on potential coordination with the conglomerate's primary shareholders. Adani has previously denied any such coordination.
Earlier this year, Sebi reportedly issued notices to twelve offshore investors associated with the Adani Group, outlining the alleged violations of disclosure requirements and investment limits. The notices sought clarification from these investors.
According to Reuters, the offshore funds were reporting their investments in Adani Group companies at the individual fund level, while the regulator wanted the disclosure of holdings at the offshore fund group level. Eight of these offshore funds have reportedly requested to settle the charges by paying a penalty without admitting guilt.
Previously, Sebi identified 13 foreign portfolio investors (FPIs) for failing to disclose information about their ultimate beneficial owners in listed Adani entities. Eight of these FPIs sought resolution with the regulator on securities violation issues.
Legal representatives for eight of these FPIs, including Albula Investment Fund, Cresta Fund, MGC Fund, Asia Investment Corporation (Mauritius), APMS Investment Fund, Elara India Opportunities Fund, Vespera Fund, and LTS Investment Fund, have collectively submitted 16 settlement applications to Sebi, as reported by The Economic Times.
Sebi's investigation also targeted five additional entities—Emerging India Focus Funds, EM Resurgent Fund, Polus Global Fund, New Leaina Investments, and Opal Investments. However, the investigation faced challenges in identifying the ultimate beneficial owners of these FPIs and their potential connections to the Adani Group.