Adani companies stock nosedives after NSDL freezes 3 FPIs linked to Group

Shares of Adani Group Companies fell between 5 percent and 18 percent on the first day of trading. Adani Enterprises and Nifty 50-listed Adani Ports and Special Economic Zone were the top losers, falling over 15% after a report in The Economic Times that the National Securities Depository Ltd (NSDL) had frozen the accounts of three foreign funds which have a total investment of Rs 43,500 crore worth of shares in four Adani Group companies.

Adani Enterprises plunged by Rs 338.20 or 21.12 percent to Rs 1,263.25 per share at 10.33 AM. Adani Power was down Rs 7.40 or 4.99 percent at Rs 140.90 share apiece. Adani Ports was down Rs 128.15 or 15.28 percent at Rs 710.65 each share. Adani Transmission was down Rs 79.85 or 5 percent at Rs 1,517.25 per share,

At 11.40, Adani Enterprises tumbled 24.99 percent to Rs 1,201.10, Adani Ports and Special Economic Zone plummeted 18.75 percent to Rs 681.50 on the BSE.

Among others, Adani Green Energy dipped 5 per cent to Rs 1,165.35, Adani Total Gas fell 5 percent to Rs 1,544.55, Adani Transmission declined 5 percent to Rs 1,517.25 and Adani Power slumped 4.99 percent to Rs 140.90.

According to the depository's website, the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund were frozen on or before May 31. An account freeze indicates that the funds would not be able to sell any of the existing securities or buy any new securities.

All the three funds, based out of Mauritius, are registered with Securities and Exchange Board of India (SEBI) as foreign portfolio investors (FPIs). According to the ET report, they together hold 6.82 percent in Adani Enterprises, 8.03 percent in Adani Transmission, 5.92 percent in Adani Total Gas, and 3.58 percent in Adani Green, as mentioned by the daily. They are registered at the same address in Port Louis and don't have websites, the daily reported.

SEBI updated the know your customer (KYC) documentation for FPIs and allowed time till 2020 to comply with the new norms. The regulator sought additional information from FPIs, including disclosures on common ownership and personal details for key employees. The regulator had warned that non-compliance to the new norms will lead to a freeze on the accounts.