The accounts of three foreign funds that are among the biggest backers of the Adani group are "active" and not frozen, National Securities Depository Ltd Vice President Rakesh Mehta has said.
The central securities depository's response came after Adani group shot an email to the NSDL, asking the status of three foreign funds. The company also provided the details of Demat accounts of the three funds mentioned in media reports, including Apms Investment Fund Ltd, Albula Investment Fund Ltd and Cresta Fund Ltd. The freeze, however, is on accounts of the funds that hold certain other securities and is not new.
"We request you to please confirm whether the aforesaid Demat accounts are frozen by NDSL or not?" the Adani group letter stated.
Earlier in the day, reports of a freeze on these accounts had sent Adani group stocks plummeting to record levels. The Economic Times had earlier reported the NSDL had frozen the accounts of three foreign funds owning over Rs 43,500 crore worth of shares in four Adani Group companies due to insufficient disclosure on beneficial ownership. An account freeze implies the funds won't be able to transact in securities of those companies.
The Adani group has dismissed the claim as "blatantly erroneous". "We regret to mention that these reports are blatantly erroneous and are done to deliberately mislead the investing community. This is causing irreparable loss of economic value to the investors at large and reputation of the group," the Adani group told the stock exchanges today.
Among the group companies, Adani Enterprises share tumbled 25 per cent today, the most, among Adani Group stocks. These three funds collectively owned about 2.1 per cent to 8.91 per cent stake in five Adani group companies as of March 31, 2021.
The crash in Adani Group stocks wiped out over $7.6 billion (nearly Rs 55,692 crore) to $67.3 billion from business tycoon's Gautam Adani's net worth on Monday. The drastic fall in net worth of the billionaire businessman was reflected in the Forbes real-time Billionaires index in early trade today.
After the Indian market closed, the index showed some recovery with Adani's net worth showing a loss of $4.1 billion or Rs 29,307 crore to $70.8 bn against Friday's close of $74.9 billion.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today