Freezing of FPI accounts by NSDL: Adani Group stocks tumble

New Delhi: Shares of six listed Adani Group companies tumbled on the stock market after a report suggested that the National Securities Depository Limited (NSDL) has taken action against three foreign funds with major stakes in four of the group's firms.

The report indicated that the NDSL has frozen three FPI accounts — Albula Investment Fund, Cresta Fund and APMS Investment Fund — that hold shares worth Rs 43,500 crore in the Adani group.

The three FPI accounts were frozen by the NSDL on account of "insufficient disclosure" of information regarding beneficial ownership under the Prevention of Money Laundering Act (PMLA).

The report also indicated the Securities and Exchange Board of India (Sebi) has initiated an investigation to find out if there has been price manipulation in shares of the Adani Group companies.

It may be noted that the FPIs held shares to the tune of Rs 43,500 crore in four of the conglomerate's listed companies — Adani Enterprises Limited (AEL), Adani Total Gas Limited (ATGL), Adani Transmission Limited (ATL) and Adani Green Energy Limited (AGEL). Two other listed firms, Adani Power and Adani Ports and SEZ, also tumbled and traded weaker throughout the day. The stocks of six listed Adani group companies fell sharply within the first hour of trading and hit lower circuits. Among individual stocks, Adani Enterprises fell 25 per cent at Rs 1,201 apiece, followed by Adani Ports (down 18 per cent at Rs 681). So far in the current calendar year, Adani Enterprise has surged over three-fold, while Adani Ports and Adani Total Gas have zoomed over 100 per cent and four-fold, respectively.

Analysts say, till there is more clarity on the issue and clarification, if any, from the company, investors should remain cautious and refrain from making any fresh investment in the related stocks.