SEBI Warns Mauritius-Based Adani Investors Over Disclosure Delays

SEBI has warned two Mauritius-based funds invested in the Adani Group that they could face fines and licence cancellation for not sharing shareholder details, Reuters reported Monday, citing a document from the market regulator.

The two funds; Elara India Opportunities Fund and Vespera Fund; were repeatedly asked since 2023 to disclose full details of their shareholders, as they held "concentrated positions" in Adani companies, the report said.

So far, the funds haven’t provided the requested information or any reason for the delay. This has hindered SEBI’s probe into whether the Adani Group complied with minimum public shareholding rules. The SEBI document also said Elara did not disclose its acquisition of certain Adani stocks that crossed the 5% threshold, as required.

Although the funds are registered in Mauritius, they fall under SEBI’s regulatory oversight as foreign portfolio investors.

The funds have reportedly applied to settle the matter with SEBI by paying a fine without admitting wrongdoing, Reuters said, citing sources. It’s unclear what penalties they may eventually face.

Two other Mauritius-based FPIs—Lotus Investment and LTS Investment—also did not share details of their Adani holdings when asked, the report added.

SEBI’s broader investigation into the Adani Group began after a report by Hindenburg Research accused the conglomerate of using tax havens improperly. The group denied any wrongdoing, and its shares have since rebounded. Listed companies are required to maintain at least 25% public shareholding, but Hindenburg alleged some offshore investors were linked to Adani, breaching the rule.