India’s markets regulator Sebi is probing the plunge in shares of Adani group companies and any possible irregularities in the recent share sale by its flagship company, a source with direct knowledge of the matter said on Wednesday. told Reuters.
Spokespeople for Adani Group and Sebi did not immediately respond to requests for comment.
The source said on condition of anonymity because the matter is confidential.
Adani Group shares have declined since the Hindenburg report last week, which alleged improper use by the group of offshore tax havens and stock manipulation.
The group has denied the allegations.
The source said that Sebi is also looking into the possibility of price manipulation of Adani Group’s shares.
Shares of Adani Enterprises, often described as the incubator of Adani businesses, fell 28% on Wednesday, taking its losses since the Hindenburg report to over $18 billion. Adani Ports and Special Economic Zone fell 19%. Both the stocks marked their worst day ever.
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