Adani Shares In Green After NSDL Rectifies Status Of FPIs, Says 'Only GDR Linked Accounts Frozen'

Shares of Adani Enterprises and Adani Port opened at Rs 1410 and Rs 669.3. Adani Power, Adani Transmission, Adani Green, and Adani Total Gas shares were trading at Rs 98, Rs 932, Rs 940, and Rs 954.

Adani Group

Shares of Adani Group firms were trading in green in a weak Mumbai market on Wednesday noon, after the National Services and Depository (NSDL) has changed its website entries to correct an error that caused stock market confusion and volatility in the price of Adani group shares last month.

According to recent NSDL website changes, only the demat accounts of three FPIs, including Albula Investment Fund, Cresta Fund, and APMS Investment Fund, that had links to the Global Depository Receipt (GDR) issuance matter, were frozen. GDR has now been added in front of the three FPIs mentioned in the list of frozen accounts by NSDL.

Shares of Adani Enterprises and Adani Port and SEZ opened up 1% at Rs 1410 and Rs 669.3, respectively. Adani Power and Adani Transmission, Adani Green, and Adani Total Gas shares were trading up 3% at Rs 98, Rs 932, Rs 940, and Rs 954, respectively.

Last month, investors lost over Rs 2 lakh crore on reports of NSDL freezing FPIs, owning substantial stakes in Adani Group firms. 

The NSDL clarification comes after the market regulator, The Securities and Exchange Board of India (Sebi), has reportedly requested information on the ultimate beneficial owners (UBOs) of six Adani Group stocks from custodians of foreign portfolio investors (FPIs).

SEBI's action comes after Mahua Moitra, a Lok Sabha member from West Bengal, wrote to India's Finance Minister Nirmala Sitharaman last week, requesting an investigation into Adani group companies' significant foreign portfolio investments (FPIs).

"Written again to Hon'ble FM, RBI, CBDT, ED, DRI et all demanding urgent investigation into over-invoicing by Adani companies, roundtripping of funds & dodgy FPI investments Anyone listening? Or everyone in a glass house?" She said in a tweet on Monday.

On July 19, Pankaj Chaudhary, India's Minister of State (MoS) for Finance, told the parliament that the country's market regulator and customs authorities are looking into some Adani Group companies for rule violations.