According to two persons with firsthand knowledge of the situation, India's markets regulator discovered that twelve offshore funds investing in Adani group firms violated investment limitations and disclosure requirements. This information was disclosed on Monday.
Since they were not authorized to communicate with the media, they declined to be identified.
Email inquiries for comment were not immediately answered by the Adani Group or the Securities and Exchange Board of India (Sebi).
In August of last year, Reuters was the first to reveal that Sebi had found infractions of the regulations governing listed businesses' disclosures and the shareholding restrictions for offshore funds.
In order to ascertain if the Adani Group may be perceived as operating "in concert" with the conglomerate's major shareholders, the regulator was also investigating the group's relationship with one of the funds; Adani has previously refuted this charge.
According to the sources, the regulator sent warnings early this year to twelve overseas investors in the Adani group, detailing the allegations and requesting an explanation from them about the disclosure violations and investment limit breaches.
"The offshore funds disclosed, at the fund level, their investments in Adani group enterprises. The first of the two sources stated that the regulator desired the disclosure of holdings at the offshore fund group level.
According to the sources, eight of these offshore funds have filed requests to the regulator to resolve the allegations by paying a fine without acknowledging any wrongdoing.
