Introduction:
Adani Group Faces Controversy as Six Funds Linked to Group Shut Down
The Adani Group was investigated and the funds were closed
Investigative journalists have reported that six out of eight Bermuda and Mauritius-based public funds used by individuals associated with the Adani Group to purchase shares of the group’s listed companies have been closed. This comes after the Organized Crime and Corruption Reporting Project (OCCRP) revealed that members of the Adani family secretly held significant stakes in group companies, potentially violating the country’s maximum ownership laws through promoters in listed entities.
Now SEBI is facing difficulties in getting information of beneficiaries
The closure of these funds has created challenges for the Securities and Exchange Board of India (SEBI) in obtaining information about the ultimate beneficiaries. SEBI’s initial investigation into the defunct companies aims to determine whether they played a role in manipulating the Adani Group’s shares. However, with the closure of these funds, it has become difficult for SEBI to gather information about the beneficiaries of these institutions.
This fund was closed
The closure of these funds has raised eyebrows, as publicly held funds typically have a longer duration. For example, the Bermuda-registered Global Opportunities Fund, which was registered in 2005, closed in 2006. Similarly, several other funds, such as the Mauritius-based Ascent Trade and Investment Private Limited and Lingo Trading and Investment Private Limited, have also closed within a relatively short period of time.
Expert Committee
A Supreme Court-appointed expert committee has highlighted the difficulties faced by SEBI in obtaining information on the beneficial owners of foreign funds. Funds registered in countries like Mauritius are required to share minimum finances with the regulator and use a “feeder fund” structure. However, the problem arises when a fund registered in these countries closes, as their feeder funds registered in other jurisdictions may not be registered.
Was he associated with the fund?
The OCCRP has alleged that individuals associated with the Adani Group had links with the closed funds. The exact nature of these associations and their implications are yet to be fully determined.
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