After a steep rise in stock prices of Adani’s companies in the last year, the news of alleged manipulation in the stock prices by 3 FPIs resulted in a loss of ~₹50,000 crores of wealth of Gautam Adani. The shares have also fallen drastically in the first half of trading. Let’s understand what happened.
Crux of the Matter
National Securities Depository Ltd. (NSDL) froze accounts of 3 Foreign Portfolio Investments (FPI) that together hold ~₹45,000 cr worth of shares of 4 Adani firms. FPI accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund were frozen on or before 31st May, 2021.
Officials claim that the disclosures made by these funds were insufficient. All 3 of them are based out of Mauritius at the same address in Port Louis.
FPI Funds Consolidated In Adani Group
SEBI, in a separate probe, is investigating whether share prices of companies of Adani group were manipulated.
All 6 stocks of Adani Group of companies hit lower circuit in the initial hours of trading on 14th June.
As per Forbes real time billionaires list, ~55,000 crore of Gautam Adani’s wealth was erased as of 10 AM 14th June.
- National Securities Depository Limited (NSDL) was founded 24 years ago on August 8, 1996. Based in Mumbai, it is the central securities depository and falls under the jurisdiction of the Ministry of Finance, Government of India.