Freezing of FPI accounts: Adani Group, NSDL clear confusion after company's stocks tumble

NEW DELHI: In a new twist to the Adani Group foreign fund investors case, the National Securities Depository Ltd (NSDL) has clarified on Monday that the fund accounts are frozen but the freezing is not related to the Adani companies.

Shares of Adani Group companies traded on a sombre note for the second straight day on Tuesday even after NSDL clarified that the accounts of three foreign funds - holding nearly Rs 43,000 crore worth of Adani Group shares - are 'active' and not frozen.

The accounts of three foreign funds that are among the biggest backers of the Adani Group are 'active' and not frozen, NSDL Vice President Rakesh Mehta was quoted as saying by a Reuters report on the issue.

The report quoting an NSDL official said that the freeze is on accounts of the funds that hold certain other securities and is not new. The news agency report citing the source said the depository hasn't taken any action as of now. Reports of a freeze on the foreign investors' accounts sent several Adani stocks plummeting on Monday.

Meanwhile, the Adani Ports also clarified that the media reports on freezing of accounts of foreign funds were published to deliberately mislead the investing community.

In a stock exchange filing, Adani Ports has clarified its stand on the reports that NSDL has frozen the accounts of three foreign funds - Albula Investment Fund, Cresta Fund and APMS Investment Fund - holding shares in the Adani Group companies.

"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 the reputation of the group," Adani Ports said.

Clarification on news article published in the Economic Times – A/cs of 3 FPIs Owning Adani Shares Frozen.https://t.co/IFiqd6xj9L — Adani Group (@AdaniOnline) June 14, 2021

"Given the seriousness of the article and its consequential adverse impact on minority investors, we requested the Registrar and Transfer Agent, with respect to the status of the Demat accounts of the aforesaid funds, and have their written confirmation vide e-mail dated June 14, 2021, clarifying that the Demat accounts in which the aforesaid funds hold the shares of the Company are not frozen," the company said.

Shares in companies controlled by Indian billionaire Gautam Adani shed more than USD 6 billion on Monday despite rejecting media reports that said accounts of three foreign investor funds that own stocks had been frozen.

Adani Group flagship Adani Enterprises closed down 6.3% after plunging as much as 25%, its steepest fall in nearly a decade. The NSDL website showed it had frozen as of May 31 the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund without citing a reason.

However, the Adani firms later said they had received an e-mail from the "Registrar and Transfer Agent" dated June 14 saying "that the Demat Account in which the aforesaid funds hold the shares of the company were not frozen".