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Gautam Adani’s troubles increased, accounts of 3 foreign funds investing 43,500 crores frozen

Not only India, but the second richest man of Asia, Gautam Adani has suffered a big setback. NSDL i.e. National Securities Depositories Limited has frozen the accounts of three foreign funds Investment Fund, Cresta Fund and APMS Investment Fund. He has shares worth more than Rs 43,500 crore in four Adani Group companies. This news is no less than a shock for Gautam Adani. This has led to a huge fall in the shares of Adani’s companies. Freezing the account means that the fund cannot sell any existing securities or buy new ones. Adani Enterprises lost 15 per cent, Adani Ports and Economic Zone 14 per cent, Adani Power 5 per cent, Adani Transmission 5 per cent, Adani Green Energy 5 per cent, Adani Total Gas 5 per cent. All three funds are from Mauritius and are registered with SEBI as Foreign Portfolio Investors. The three combined together hold 6.82 per cent in Adani Enterprises, 8.03 per cent in Adani Transmission, 5.92 per cent in Adani Total Gas and 3.58 per cent in Adani Green. According to the Economic Times report, there is not enough information about the ownership of these companies. Action has been taken because of giving. Under the Prevention of Money Laundering Act, it is necessary to give complete information about Beneficial Ownership. In the year 2019, the capital markets regulator made the KYC documentation for FPIs as per PMLA. The funds were given time to comply with the new rules till 2020. SEBI had said that the accounts of funds that do not comply with the new rules will be frozen. As per the rules, the FPIs had to provide some additional information.