Adani Opaque Funds Investment: The Organized Crime and Corruption Reporting Project (OCCRP) found that secret Mauritius-based investment organizations invested millions in Adani Group stocks. Organized Crime and Corruption Reporting Project research provided this information. A charity network that examined offshore tax haven firm emails and documentation uncovered at least two incidents of investors trading Adani shares using questionable means. Investors often used foreign tax havens to trade equities.
After the study’s results were released, all Adani business cluster businesses’ share prices plummeted. The primary firm, Adani Enterprises, saw its value decline by 2%, while the satellite companies, Adani Ports, Adani Power, and Adani Green, all saw their valuations drop by 1% to 2%.
Hindenburg Research, an American short-seller, claimed this fresh information. This group accused Adani of improper business practices earlier this year. There were claims. The organization suggested that owners of Adani’s publicly traded companies may be hiding behind tax haven corporations. The Adani Group denied these charges and said it would continue to follow all laws.
The Hindenburg report prompted Adani Group stocks to plummet, costing the firm $150 billion. After paying off its debts and restoring investor faith, Adani’s market value has fallen despite a slight return. However, as the loan was paid off, growth and investor faith were restored. However, the study lowered the number.
Also Read: Money Market Mutual Funds: Low-Risk Investments with Higher Returns
Adani Group refuted the claims in response to the OCCRP’s latest results, citing Hindenburg’s previous statements. This showed that the claims were made earlier. The company has publicly pledged that all of its listed companies will scrupulously follow the law.
The supreme court of India, the most significant and well-known court in the country, has appointed a monitoring committee to investigate these charges. The committee has not found any evidence that the Adani Group made illicit investments abroad.
Nasser Ali Shaban Ahli and Chang Chung-Ling were agents in these offshore transactions, according to OCCRP. Both of these guys are longtime business partners of the Adani family. The documents suggest a planned business model, but there is no proof that these people were intermediaries for the Adani family. This is true even though the paperwork indicates a planned approach. Even though the paperwork suggests a trade strategy, this happened.
Whether Ahli and Chang’s interests are considered “promoters” of Adani affects whether there will be legal sanctions. If they do, they’ll face legal consequences. In India, businesspeople talk about “promoters” like they do the corporation. Because of their combined firm interests and insider status, the insider ownership limitations may have been broken. This is possible.
Where these offshore assets come from and whether they are lawful is still unknown as the convoluted network of claims, rejections, and legal examination unravels. The solution is still unclear.
Our Reader’s Queries
Which mutual funds have invested in Adani?
The Mutual Funds Holding report displays the Scheme Name, AUM (Rs. cr.), and the number of shares for various funds. Among them, the DSP Equal Nifty 50 Fund – Regular (G) has 287.62 crores AUM as of Sep ’23, with 9,317 shares. The DSP Equity Savings Fund – Direct (G) has 249.03 crores AUM with 13,513 shares, while the DSP Equity Savings Fund – Regular (G) has 399.77 crores AUM with 34,106 shares. The report lists several other funds as well.
What funds were used to invest in the Adani shut?
Regulatory filings in Bermuda and Mauritius reveal that six out of eight public market funds linked to the Adani Group have been closed. These funds were allegedly used to purchase shares of the conglomerate’s listed companies. The shutdown of these funds poses a challenge for the Securities and Exchange Board of India (SEBI) in their investigation into the matter.
Nasser Ali Shaban Ahli from the UAE and Chang Chung-Ling from Taiwan are both connected to Vinod Adani, the brother of the founder of the conglomerate, Gautam.
Who invested in Adani after Hindenburg report?
Rajiv Jain made a significant move when his firm, GQG Partners Inc, invested $1.87 billion in the Adani group in March 2020. This marked the first major investment in Adani’s conglomerate since the Hindenburg report. Ajit Jain’s company’s acquisition of shares in Adani’s group was a noteworthy development.