India's market regulator Sebi is examining a rout in the shares of Adani Group companies and also looking into any possible irregularities in the recent share sale by its flagship company, a source with direct knowledge of the matter told Reuters on Wednesday.
Spokespeople for Adani Group and Sebi did not immediately respond to requests for comment.
Sebi is also examining allegations made in a report by US short-seller Hindenburg Research that Adani companies did not declare related party transactions as required, the source said, speaking on condition of anonymity since the matter is confidential.
Adani Group shares have plunged since Hindenburg's report last week alleged improper use by the group of offshore tax havens and stock manipulation.
The group has denied the allegations.
Sebi is also looking into the possibility of any price manipulation of Adani group stocks, the source added.
Shares in Adani Enterprises, often described as the incubator of Adani businesses, plunged 28 per cent on Wednesday, bringing its losses since the Hindenburg report to more than $18 billion. Adani Ports and Special Economic Zone dropped 19 per cent. Both stocks marked their worst day ever.
Published 01 February 2023, 16:29 IST