Mumbai. Gautam Adani, the promoter of Adani Group and the country’s second richest man, lost more than 73 thousand crore rupees ($ 10 billion) within an hour as soon as the Indian stock market opened on Monday.
Mumbai. Gautam Adani, the promoter of Adani Group and the country’s second richest man, lost more than 73 thousand crore rupees ($ 10 billion) within an hour as soon as the Indian stock market opened on Monday.
Adani’s personal wealth stood at $77 billion as of Friday, according to the Bloomberg Billionaires Index. Shares of Adani companies fell up to 20 percent after the National Securities Depository Ltd (NSDL) report came on Monday.
These foreign funds have shares worth Rs 43500 crore
According to the Economic Time report, NSDL has frozen the accounts of three foreign funds. All three have shares worth Rs 43500 crore in four Adani companies. Now these funds cannot buy or sell these shares. After the arrival of this news, the lower circuit started in the companies of Adani.
Most of the shares of Adani’s companies are with the promoters.
Adani Group was currently the fastest wealth creator in the world. The market cap of Adani Group companies decreased by $ 15 billion in the sell-off on Monday. Most of the listed companies of the Adani Group hold about 75 per cent stake with the promoters. Most of the remaining Freefloat shares are in the hands of 6-7 foreign portfolio investors.
There are very few stocks left for the rest of the day to day traders or retail investors, which create artificial demand in the market. Experts also consider this to be the reason for the huge increase in the prices of the shares of the companies.
The three funds whose accounts have been frozen by NSDL are: 6.82 per cent in Adani Enterprises, 8.03 per cent in Adani Transmission, 5.92 per cent in Adani Total Gas and Adani Green. ) holds 3.58 percent stake.
Under the Prevention of Money Laundering Act, it is necessary to give complete information about Beneficial Ownership. But these foreign funds did not give complete information about the beneficial ownership. Because of this their accounts have been frozen.
What does account freeze mean?
An official said that usually custodians warn their clients about such action, but if the fund does not respond to this or does not follow it, then the accounts can be frozen. Freezing the account means that the fund cannot sell any existing securities or buy new ones.
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