India’s conglomerates may have to report transactions involving their unlisted group companies, the country’s capital market regulator said in its annual report published Monday.
(Bloomberg) — India’s conglomerates may have to report transactions involving their unlisted group companies, the country’s capital market regulator said in its annual report published Monday.
The Securities and Exchange Board of India is concerned about market risks stemming from a conglomerate with a complex set of listed and unlisted associates and plans to enhance group-level reporting of transactions, the regulator said without offering more detail or a specific time line.
Earlier this year, the Adani Group was accused of fraud by Hindenburg Research. The short seller’s report flagged several transactions between the group’s listed companies and unlisted associates as dubious and lacking transparency. The group has denied these allegations.
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Sebi is investigating the allegations but has yet to uncover any regulatory violations or fraud.
Intra-group transactions have been at the center of several other conglomerates under regulatory scrutiny, ranging from media tycoon Subhash Chandra’s Essel Group to Anil Ambani’s Reliance Capital.
–With assistance from Anirban Nag.
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