Six Adani Group companies have reportedly been on the market regulator’s watch after seeing a jump in foreign investments.

What Happened? The Securities and Exchange Board of India (SEBI) has noted a significant increase in the number of foreign portfolio investors (FPIs) in six listed companies of the Adani Group since the September quarter of 2020, the Economic Times reported, citing sources.

An analysis of quarterly foreign shareholding trends by the business daily in Adani Enterprises, Adani Total Gas, Adani Transmission, Adani Green, Adani Ports, and Adani Power reveals a substantial rise in the number of FPIs starting from the September quarter of 2020.

See Also: If You Invested ₹10,000 In Adani Green A Month After Hindenburg Report, Here’s How Much You’d Have Today

In Adani Enterprises, the flagship company of the group, the number of FPIs has more than tripled to 410 in March 2023 from 133 in September 2020. Similarly, Adani Total Gas has witnessed a surge in overseas investors, with the number increasing to 532 from 63. Adani Transmission has also experienced a significant rise, reaching 431 FPIs from 62, while Adani Green has seen an increase to 581 FPIs from 94 in September 2020.

ACC, Ambuja Cements, and NDTV have not been included in this analysis as they were acquired by the Adani Group later, while Adani Wilmar was listed in February 2022.

SEBI is currently investigating allegations of breaches in overseas investor ownership and minimum public shareholding rules by the Adani Group, which were initially raised by Hindenburg Research in January 2023, leading to a sharp decline in the conglomerate’s stock prices, though they have since recovered to a degree. The Adani Group has refuted the allegations of the report.

Since October 2020, SEBI has been probing the shareholding patterns of the Adani Group after its internal surveillance system flagged concerns about the concentration of certain foreign holdings in the six listed Adani companies, the source said. They added that SEBI has observed a diversification in FPI shareholding across these companies, although specific details have not been disclosed.

In May, a Supreme Court-appointed expert panel, formed to investigate possible regulatory failures in relation to the alleged contravention of securities laws by the Adani Group, stated that SEBI’s probe regarding the source of funds of foreign institutional investors in Adani-owned entities had yielded no definitive results.

Read Next: Adani In Debt Refinancing Talks While Ghost Of Hindenburg Looms