ED finds “suspicious” activities in share market by Adani Group-linked entities
The Enforcement Directorate (ED) has investigated the links—some as early as November 2022—of an Indian private bank and 15 more entities, which includes foreign portfolio investors (FPIs), in the case related to the short-selling of shares of the Adani Group companies.
The investigative agency has gathered substantial intelligence against these 16 entities involved in seemingly “suspicious” activities in the Indian share market related to the Hindenburg report and short-selling positions taken by them.
It has shared its results with the markets regulator Securities and Exchange Board of India (SEBI).
This comes days after SEBI submitted the status of its probe in the Adani-Hindenburg matter to the Supreme Court.
While the ED cannot register a probe under the Prevention of Money Laundering Act (PMLA) until there is a predicate offence, the SEBI can—against any entity found involved in any suspicious activity with the potential to undermine fair legal practices. So, if SEBI files a prosecution complaint, it can become the ground for the ED to initiate a probe under PMLA.
