Mauritian regulator revokes licences of Adani-linked firm under probe: Report
The Indian Express, the Mauritian financial regulator Financial Services Commission (FSC) revoked the business and investment licences of Emerging India Fund Management Ltd (EIFM), the controlling shareholder of two Mauritius-based funds in May 2022. The regulators alleged a breach by EIFM of several provisions of laws meant to curb money laundering and ensure corporate governance, the daily added.
Mauritius FSC on its website mentioned that EIFM “acted in breach" of various sections of the Financial Services Act, the Securities Act, the Financial Intelligence and Anti-Money Laundering Regulations (2003 and 2018), and the Code on the Prevention of Money Laundering and Terrorist Financing. Notably, EIFM and EM Resurgent Fund are two of the 13 overseas Adani investors under investigation under the Prevention of Money Laundering Act (PMLA).
However, after the Hindenburg report, a top official of the Mauritian FSC said that an “initial assessment" of the entities associated with the Adani Group in Mauritius did not reveal any breach of law. As per the latest records available, EIFM’s two Mauritius funds held 3.9% of Adani Power Limited, 3.8% of Adani Transmission Limited, and, at least, 1.73% of Adani Enterprise Limited, the report said.
This year in January, US-based short seller Hindenburg Research alleged that Adani Group is involved in accounting fraud, stock price manipulation, and improper use of tax havens. Following this, the Supreme Court asked SEBI to look into the allegations and submit its findings.
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