In her latest attack on the Adani group amid the ongoing Hindenburg debacle, TMC MP Mahua Moitra on Friday shared the latest analysis of a column on why foreign portfolio investors (FPIs) are not selling Adani shares amid significant volatility. pointed out and asked that Indian market regulator Securities and Exchange Board of India (SEBI) would take action if it turns out to be a case of illegal stock parking.
“With a Bloomberg column talking about how some foreign portfolio investors (FPIs) own nothing but Adani stock. The sale did not happen when the price jumped 18 times or fell 75%. Ever heard of illegal stock parking @SEBI_India?,” said TMC MP Mahua Moitra.
“I told in June 2021 how the directors of Funky Fund Foreign Portfolio Investors (FPI) are fronting for Adani. Today @andymukherjee70 says the same thing on @opinion. No conspiracy. Simple minded. Wake up @SEBI_India,” she said in another tweet.
Short seller Hindenburg Research has alleged that a Bloomberg opinion piece by columnist Andy Mukherjee has exposed that shadowy funds based in Cyprus and Mauritius could be funneling someone else’s money into Adani shares.
“In response to a question in Parliament in July 2021, the government provided a list of foreign investors in the Adani Group. It named Margaret Sajak Shi-Sankatsing, Jan Schellings and Colin de Witt as the people behind New Lena. According to the column, Hindenburg alleges they are likely “employees of AmyCorp Group, a corporate services firm with extensive ties to Adani’s web of offshore entities.”
What is stock parking?
Stock parking refers to the illegal practice of selling shares to another party with the understanding that the original owner will buy them back after a short period of time. Illicitly holding stock by a third party, or financing such stock, in which the sole reason for holding third party stock is to conceal ownership or control while maintaining the appearance of regulatory compliance.
A Reuters report on Friday suggested that Sebi is probing Adani Group’s links to some investors in the group’s aborted $2.5 billion share sale and if there are any possible violations of Indian securities laws or any conflict of interest in the process.
(with inputs from agencies)
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