EXCLUSIVE: India's market regulator is investigating Adani Group's links to some of the investors in the conglomerate's aborted $2.5 billion share sale, amid growing concern in New Delhi about a U.S. short-seller's allegations against the industrial group
SEBI and the Adani Group did not respond to requests for comment about the investigation. Great International Tusker Fund and Ayushmat Ltd. also did not respond to requests for comment.
The roles of Elara and Monarch are being examined by the market watchdog to rule out "any conflict" in the share offering process, one of the sources said.Hindenburg has alleged one Adani private entity had a small ownership stake in Monarch - which has previously worked as a bookrunner for the group - saying "this close relationship seems to pose an obvious conflict of interest.
When contacted, Monarch referred Reuters to an exchange disclosure on Feb. 3 that said an Adani entity has held "an insignificant", 0.03%, stake in the company since 2016. Reuters was unable to confirm this from public records. Elara did not respond to a request for comment on the regulator's probe and Hindenburg's allegations.
Opposition parties have protested in parliament to call for an independent probe into Hindenburg's allegations.
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