Adani Group shares tumble amid reports NSDL has frozen 3 FPI accounts: The Tribune India

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Adani Group shares tumble amid reports NSDL has frozen 3 FPI accounts: The Tribune India


New Delhi, June 14

Shares of companies in the Adani group saw a massive drop in morning trading on Monday, reaching 25 percent, amid reports that the National Securities Depository Ltd (NSDL) froze some REIT accounts held at some of those companies.

The group of billionaire Gautam Adani said on Monday that it had confirmed in writing that the accounts of three foreign funds which are among its main shareholders are not frozen and that the information to the contrary is “manifestly erroneous and misleading”.

Following the declaration, the shares of some of the group companies experienced a partial recovery of their initial losses.

Adani Enterprises closed the day down 6.26 percent at Rs 1,501.25 and the ports of Adani and the Special Economic Zone fell 8.36 percent to close at Rs 768.70 on BSE .

During the morning trade, Adani Enterprises had fallen 24.99% to Rs 1,201.10, while Adani Ports plunged 18.75% to Rs 681.50.

Among others, Adani Green Energy fell 4.13% to close at Rs 1,175.95, Adani Total Gas fell 5% to Rs 1,544.55, Adani Transmission fell 5% to Rs 1,517.25 and Adani Power fell 4.99% to Rs 140.90.

All of these stocks have reached their respective lower circuit limits during the trade.

According to media reports, the National Securities Depository Ltd has frozen the accounts of three foreign funds which together hold shares in four companies of the Adani group. Those accounts were frozen by May 31 at the latest, the report adds.

Adani Enterprises, the flagship company of the conglomerate, as well as Adani Ports and Special Economic Zone, Adani Green Energy Ltd, Adani Transmission Ltd, Adani Power and Adani Total Gas Ltd in identical stock exchanges filings said NSDL reports freezing the accounts. of Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in the companies of the group were “patently wrong and are deliberately intended to mislead the investment community”. “This results in an irreparable loss of economic value for investors in general and the reputation of the group,” they said.

Given the seriousness of the problem and the resulting negative impact for minority investors, “we have asked the Registrar and Transfer Agent, regarding the status of the Demat account (s) of the aforementioned funds and to have their written confirmation in his email dated June 14, 2021, stating that the Demat account (s) in which the aforementioned funds hold the shares of the company are not frozen, ”the companies said.

“Initially, a report on the Adani group set off a weak start, but the benchmark gradually recovered over the day, thanks to notable buys in some major indices. The company’s clarification further bolstered the market and helped the index close flat, ”said Ajit Mishra, vice president – Research, Religare Broking Ltd.

The BSE benchmark dipped 538.45 points to 51,936.31 during the day. But later he made up all the lost ground and closed at 52,551.53, up 76.77 points or 0.15%.

‘Wrong’

Adani’s group said Monday it confirmed in writing that the accounts of three foreign funds which are among its major shareholders are not frozen and that the information to the contrary is “manifestly erroneous and misleading”.

Shares of Adani group companies plunged on Monday after reports that the National Securities Depository Ltd (NSDL) froze the accounts of the three foreign funds that are among the companies’ main stakeholders.

Adani Enterprises, the flagship company of the conglomerate, as well as Adani Ports and Special Economic Zone, Adani Green Energy Ltd, Adani Transmission Ltd, Adani Power and Adani Total Gas Ltd in identical stock exchanges filings said NSDL reports freezing the accounts. of Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in the companies of the group were “patently wrong and are deliberately intended to mislead the investment community”.

“This results in an irreparable loss of economic value for investors in general and the reputation of the group,” they said.

Given the seriousness of the problem and the resulting negative impact for minority investors, “we have asked the Registrar and Transfer Agent, regarding the status of the Demat account (s) of the aforementioned funds and to have their written confirmation in his email dated June 14, 2021, stating that the Demat account (s) in which the aforementioned funds hold the shares of the company are not frozen, ”the companies said.

– PTI

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