“The scope of the review is to ensure that no insider has been the subject of an unfair transaction and, second, that disclosures have been made in an adequate and timely manner so that public shareholders are protected from unjustified risks, “said one of the two people on condition of anonymity.

On May 21, group founder Gautam Adani’s net worth reached $ 74.9 billion, earning him the title of Asia’s second richest man thanks to a massive rally in various companies in the Adani group. The group’s market capitalization, however, fell sharply on June 14 after it emerged that National Securities Depository Ltd had blocked the accounts of three Mauritian funds heavily exposed to the Adani group due to a lack of disclosure regarding final beneficiaries.

The Securities and Exchange Board of India (Sebi) is examining whether Adani Ports, Adani Group transport operations and Adani Gas have made the required disclosures, the first person said.

“Sebi will investigate whether unpublished Price Sensitive Information (UPSI) has been misused for possible insider trading in the shares of the aforementioned companies, either to influence prices or to make unfair gains,” added the person.

The regulator is also reviewing related party transactions within the group to ensure companies have made adequate and timely disclosures, the people said, asking that their names not be disclosed.

Deputy Finance Minister Pankaj Choudhary said on Monday in response to a question in parliament that Sebi was investigating some companies in the group for non-compliance. “The investigation focuses on compliance with listing disclosure standards and corporate governance standards in terms of related party agreements,” said the first person cited above.

In response, a spokesperson for the Adani group said: “We have always been transparent with all of our regulators and we have full confidence in them. Although we have always fully complied with applicable Sebi regulations, we have made full disclosure to Sebi on specific requests for information from them in the past. However, we have not received any requests for communication or information recently. “

Following Choudhary’s remarks, shares of Adani’s six listed companies fell, with Adani Total Gas falling from the maximum daily limit of 5%.

Stocks continued their losing streak on Tuesday, with four of six companies reaching the bottom circuit. The other two companies fell about 2%.

Shares of Adani Green Energy were more than 11-fold higher in March from its 52-week low of ₹112.70 on March 17, 2020. Adani Green develops, builds, owns, operates and maintains large-scale grid-connected solar and wind projects, and since its listing on June 18, 2018, the market value of the company has been multiplied by more than 44 compared to ₹28 on BSE.

Adani Total Gas has increased almost nine times through March of this year compared to its lows in March 2020, while Adani Enterprises has increased almost eight times over the same period. Adani Transmission more than quintupled in the year through March. Shares of Adani Ports and the Special Economic Zone jumped 262%, and Adani Power gained 226% from March last year.