India’s Securities and Exchange Board of India (SEBI) has issued warnings to two Mauritius-based offshore funds—Elara India Opportunities Fund and Vespera Fund—threatening penalties and potential license cancellations due to their failure to disclose detailed shareholder information related to their investments in the Adani Group.
⚖️ SEBI’s Enforcement Actions Against Offshore Funds
SEBI has been investigating the Adani Group and its offshore investors since 2023, following allegations by Hindenburg Research of improper use of tax havens and violations of public shareholding norms. Despite repeated requests over the past two years, Elara and Vespera have not provided the required “granular disclosures” of their shareholders. This non-compliance has impeded SEBI’s investigation into whether the Adani Group breached the minimum public shareholding requirement of 25% in listed companies.
Although based in Mauritius, these funds are registered as Foreign Portfolio Investors (FPIs) in India, bringing them under SEBI’s regulatory purview. The funds have applied to settle the matter through a monetary fine without admitting guilt.
🌐 Broader Implications and Ongoing Investigations
The scrutiny extends beyond Elara and Vespera. At least two other Mauritius-based investors in Adani stocks—Lotus Investment and LTS Investment—have also failed to provide requested information.
In a related development, U.S. authorities have indicted Adani Group’s chairman, Gautam Adani, and others over alleged bribery and misleading investors, claims which the group denies.
SEBI’s actions underscore its commitment to enforcing compliance and transparency among foreign investors, particularly those linked to high-profile conglomerates like the Adani Group. The Times of India
