Sebi turns down Adani-linked FPIs' settlement applications
Sebi rejected settlement applications from 13 Adani-linked foreign portfolio investors due to non‑compliant terms and lack of disclosure.Summary
India’s capital‑markets regulator Sebi has rejected settlement applications from 13 foreign portfolio investors (FPIs) that hold large stakes in listed Adani Group companies. The regulator said the proposed terms did not match its settlement framework and that some FPIs were unwilling to provide essential disclosures or to disgorge the amounts Sebi sought, which run into hundreds of crores. The case dates back to October 2020, when Sebi’s surveillance first flagged the unusual concentration of these holdings. The FPIs filed multiple settlement applications in April 2024 after Sebi issued show‑cause notices under two tracks – possible cancellation of their FPI registrations and fines for securities‑law breaches. Sebi’s rejection, communicated last week, revives the investigation, and the regulator is now planning to revise its settlement rules to allow a second chance for rejected applicants, albeit with a 20 % surcharge on the settlement amount. Neither Sebi, the Adani Group nor the FPIs responded to queries.
(Source：Google News)