Adani Group says not aware of subpoena from US regulators to investors

Adani Group's spokesperson on Friday said the conglomerate isn't aware of subpoena from US regulators to investors.

The US Attorney's Office in Brooklyn, New York, has sent inquiries in recent months to investors with large holdings in Adani Group, focused on what the ports-to-power conglomerate told them, Bloomberg reported on Thursday.

The US Securities and Exchange Commission also has a similar probe underway, Bloomberg reported, citing two people familiar with the matter.

The authorities are looking into the representations that Adani made to its American investors following short-seller Hindenburg's report, the report said.

Adani Group stocks tumbled after the report of US attorney inquiries to investors holding large stakes.

Shares of Adani Group companies fell up to 10% in Friday's session.

Shares of flagship Adani Enterprises Ltd fell as much as 9.8% to Rs 2,163.3, lowest since May 22.

The Group rejects any suggestion that it or its businesses have not acted as per the regulations and accounting standards of the jurisdictions in which they operate, the spokesperson told Reuters.

"Our various issuer groups remain confident that the disclosures are full and complete as disclosed in the relevant issuer offering circulars," the spokesperson said.

In January, US short seller Hindenburg Research said it held short positions in the group and accused the conglomerate of improper use of offshore tax havens. The short-seller also flagged concerns about high debt, eroding over $100 billion in investor wealth.

The Adani Group has rejected all the allegations.

Sebi had, in May, "drawn a blank" in its investigations into suspected violations in the Group's overseas investments and a Supreme Court-appointed panel said its ongoing pursuit of the case could be a "journey without a destination".

The SEC said it does not comment on the existence or nonexistence of a possible investigation. 

With inputs from Reuters