Offering some relief to the beleaguered Adani Group, Mauritian regulator Financial Services Commission (FSC) said that it has not found any breach of law by the 38 companies and 11 group funds associated with Adani Group.
In a report published by US-based short-seller Hindenburg on January 25, it was mentioned that billionaire Gautam Adani used shell companies based in Mauritius to manipulate stock prices of his Indian-listed companies. The Mauritian market regulator added that its internal report has not been shared with its Indian counterpart yet.
Dhanesswurnath Vikash Thakoor, chief executive officer, FSC, told Business Standard, “An initial assessment of all the entities related to that (Adani) group in Mauritius, and, up to now, based on the information submitted, we have not found any non-compliance with our rules.”
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Presently, Securities and Exchange Board of India (SEBI), the Indian market regulator, is assessing the connection between Adani Group and two Mauritian firms—Great International Tusker Fund and Ayushmat Ltd—that participated as anchor investors in the recently cancelled share sale of Adani Group’s flagship company, Reuters reported.
The conglomerate has lost $120 billion in market capitalisation after short seller Hindenburg raised allegations of fraud and stock price manipulation against the group. Adani Group, however, denied all the charges against them mentioned in Hindenburg's report.
Previously, Australia’s market regulator Australian Securities & Investments Commission (ASIC) also raised some questions against the conglomerate. “[We] will review the allegations against Adani and determine whether further inquiries are warranted,” an ASCI spokesperson told Reuters. Financial Conduct Authority (FCA), UK’s financial regulator, is also looking into the connection between Adani Group and Elara Capital, a London- based company.
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