New Delhi: While the Adani Group is currently going through a difficult time, there is a relief news for the Adani Group. Mauritius regulator Financial Services Commission (FSC) has given clean chit to Adani Group. The Financial Services Commission has said it found no violations of the law in 38 companies and 11 group funds related to the Adani Group. American research firm Hindenburg has claimed in its report published on January 24 that billionaire Gautam Adani has used Mauritius-based shell companies to manipulate the share prices of his listed companies.
No violation of rules
Mauritius’ market regulator said its internal report has not yet been shared with its Indian counterpart. Financial Services Commission Chief Executive Officer Dhaneswarnath Vikas Thakur said, “According to information collected in a preliminary assessment from all entities related to the Adani Group in Mauritius, there is no evidence of any breach of the rules so far.”
Currently, Indian market regulator Sebi is probing the relationship between the Adani Group and two Mauritius-based companies – Great International Tusker Fund and Ayushman Limited. Both the companies participated as anchor investors in the FPO of the recently canceled Adani Enterprises.
Big drop in Adani Group’s market cap
The market capitalization of Adani Group companies fell by more than 50 percent after the short-seller Hindenburg report. Hindenburg in its report claimed that seven listed companies of the Adani group are overvalued. The report also claims that the Adani group has been engaged in stock manipulation and money laundering for decades. The Adani group said that either Hindenburg did not do proper research or presented false facts to mislead the public. In a more than 400-page response, the Gautam Adani-led group termed all the allegations as misleading.
Also investigated in Australia and the UK
Earlier, Australia’s market regulator Australian Securities and Investments Commission (ASIC) also raised questions against Adani Group. An ASIC spokesman told Reuters: ‘We will review the allegations against the Adani Group and determine whether further inquiries are warranted.’ Britain’s financial regulator, the Financial Conduct Authority (FCA), is also investigating the relationship between Adani Group and London-based company Ilara Capital.