As the Indian government relies on agencies and regulators to probe the Adani-Hindenburg fiasco, Securities and Exchange Board of India has refrained from commenting on it. At the same time, SEBI had also initiated an investigation into Adani's Rs 20,000 FPO which was cancelled as allegations of fraud wiped off its value. Now at least three deals between the Adani Group and offshore firms are reportedly under the market regulator's scanner.
Coming months after Hindenburg's accusations of Adani using firms in Mauritius to inflate its stock prices, the probe will look for violations of related party transaction norms.
What is the regulator looking for?
SEBI will focus on alleged links between Gautam Adani's brother Vinod Adani, and the three offshore firms, where he is either a beneficiary or director.
The failure to disclose those connections could put the conglomerate in the dock over related party dealings.
Transactions between relatives, promoter group and subsidiaries, must be revealed via public and regulatory filings for shareholder approval.
If a firm is found guilty of violating this norm, it usually has to pay a monetary penalty.
What's Vinod Adani's role?
The Adani Conglomerate had previously said that Vinod Adani has his own business and doesn't hold managerial positions in group firms.
But later it admitted that a fund controlled by him was used for the ACC and Ambuja Cement acquisition, and that it was a part of Adani Group.
Vinod Adani is also identified as a member of the promoter group, while his son is the managing director for agro and oil, and a director at Adani Enterprises.
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