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Asia's 2nd Richest Man Gautam Adani's Group Stocks Locked at 5% Each in Wake of Freeze on Foreign Funds

Many of the Adani Group shares of the accounts of three foreign funds, which were the toast of the stock market, hit the lower circuit in the opening session

Asias 2nd Richest Man Gautam Adanis Group Stocks Locked at 5% Each in Wake of Freeze on Foreign Funds

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  15 Jun 2021 10:34 AM GMT

NEW DELHI: Post reports of accounts of three foreign funds - holding nearly Rs 43,000 crore worth of Adani group shares being frozen spread like wildfire, the stocks market reacted with a somber note.

Adani Transmission, Adani Power, and Adani Total Gas were locked in a 5 percent lower circuit limit on the Bombay Stock Exchange (BSE) on June 15.

Adani Total Gas fell 5 percent to Rs 1,544.55, Adani Green Energy by 5 percent to Rs 1,165.35, Adani Transmission by 5 percent to Rs 1,517.25, Adani Power by 5 percent to Rs 140.90, and Adani Enterprises by 11.28 percent to Rs 1,420.80 as of 11.45 IST.

The fall was triggered by reports that the National Securities Depository Ltd (NSDL) had frozen the accounts of three foreign funds that hold around $ 6 billion worth of stock in Adani companies.

Details of the "freeze" are not yet known, and market reports have pointed to possible insufficient disclosure of information regarding beneficial ownership.

Notably, clearing the air, NSDL Vice President Rakesh Mehta said that the accounts of three foreign funds which are among the biggest backers of the Adani group are 'active' and not frozen.

The central securities depository's response came after the Adani group shot an email to the NSDL, asking the status of three foreign funds.

Further, a Reuters report quoting an NSDL official said the freeze is on accounts of the funds that hold certain other securities and is not new.

Gautam Adani has become Asia's second richest man after dethroning the Chinese business magnate, investor, and philanthropist Jack Ma, powered by an exponential surge in shares of Adani Group's companies. Adani is currently the 14th richest man in the world.

On the other hand, after capturing a mega share of the market in the country's ports and airport businesses including Guwahati Aiport, Gautam Adani has now set his sights on the country's cement sector.

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