Shares of Adani Group Companies fell as much as 5 percent on Monday as the Directorate of Revenue Intelligence (DRI) and market regulator Securities and Exchange Board of India (SEBI) are probing some of its entities for non-compliance with rules.
Today, the Minister of State for Finance Pankaj Chaudhary has informed the Parliament that several companies belonging to the Adani group remain under the scanner of the market regulators. However, he did not tell when the investigation was launched, and the name of the companies which were involved.
Chaudhary said SEBI is investigating some Adani NSE -1.07 % Group companies with regard to compliance with SEBI Regulations. Further, the DRI is investigating certain entities belonging to the Adani Group, he added.
The government, meanwhile, has clarified that the Enforcement Directorate was not carrying out any investigation into the Adani Group.
Following the development, stocks of Adani Group companies, which operate airports and ports, coal and gas trading, power generation, and transmission, have tumbled by more than 2-5 percent each. The shares of the listed companies- Adani Green Energy, Adani Transmission, Adani Ports, Adani Power, and others closed between 1.1%-4.8% lower today. The Adani enterprises, the listed entity of Gautam Adani’s empire, fell over 2.40 percent.
Last month, the stocks of companies recorded their biggest-ever declines after a report released on June 14 suggested that three FPI accounts of Mauritius-based foreign investors in Adani companies were frozen by the National Securities Depository Limited (NSDL). Following this, their shares tanked sharply by 12.9-44.9 percent, cumulatively losing over $37.6 billion in four weeks even after Adani rejected the report as blatantly erroneous.
Meanwhile, the spokesperson of the Adani group has not yet commented on the new development.