India’s market regulator investigates three Mauritius-based entities

India’s market regulator, the Securities and Exchange Board of India (SEBI) is investigating a possible violation of ‘related party’ transaction rules in India’s Adani Group‘s dealings with at least three Mauritius-based offshore entities that reportedly have links to the brother of the conglomerate’s founder.

The three  Mauritian entities allegedly entered into several investment transactions with unlisted units of the ports-to-power conglomerate founded by billionaire Gautam Adani over the last 13 years.

The three Mauritius-based offshore entities with links to Vinod Adani being probed for ‘related party’ transactions are Krunal Trade and Investments Ltd and Gardenia Trade and Investments Ltd, and Electrogen Infra in Dubai.

Under Indian laws, direct relatives, promoter groups and subsidiaries of listed companies are considered related parties.

A promoter group is defined as an entity that has a large shareholding in a listed company and can influence company policy.

Transactions between such entities have to be disclosed in regulatory and public filings and require shareholder approval above a specified threshold. Violations typically attract monetary fines.

Source: wionews.com