Sebi Looks Into Insider Trading Charge Against Adani Firms, As The Investigation Continues
- ByStartupStory | July 21, 2021
Sebi looks into insider trading charge against Adani firms, as the investigation continues. India’s market regulator is scrutinizing at least three companies controlled by billionaire businessman Gautam Adani for alleged breaches of securities laws related to prevention of insider trading and inadequate disclosures, according to a close source. “The scope of the scrutiny is to ensure no insider traded unfairly and, secondly, the disclosures have been made adequately and in a timely manner so that public shareholders are protected from unwarranted risks,” conveys the source Ironically, on this day only, group founder Gautam Adani’s net worth touched $74.9 billion, winning him the tag of Asia’s second-richest man which was led by a massive rally in various Adani Group companies. The group’s market capitalization, however, fell sharply after three Mauritius-based funds of the company were locked, along with large exposures to the Adani Group over lack of disclosures pertaining to end-beneficiaries.
The Securities and Exchange Board of India (Sebi) is looking at whether Adani Ports, Adani Group’s transmission businesses and Adani Gas have made the required disclosures. The regulator is also scrutinizing related-party transactions within the group to ensure companies have made adequate and timely disclosures, the people said, requesting their names not be disclosed. On Monday, junior finance minister Pankaj Choudhary said in response to a query in Parliament that Sebi is probing certain group firms for non-compliance.
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