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India regulator ‘draws a blank’ in foreign links probe into Adani group


India’s markets watchdog has “drawn a blank” in investigations into suspected violations in overseas investments in the Adani group and its ongoing pursuit of the case could be a “journey without a destination,” a court-appointed panel said.

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Shares of companies of the coal-to-airports conglomerate, controlled by billionaire Gautam Adani, were up between 1.2 percent to 7 percent in late trade on Friday in a largely flat wider market.

The group’s listed companies lost more than $100 billion in market value earlier this year after US-based Hindenburg Research raised several governance concerns. The group has denied wrongdoing, though the controversy sparked a political fight between the ruling party and the opposition that wanted a parliamentary investigation.

Following this, the Supreme Court asked markets regulator the Securities and Exchange Board of India (SEBI) to probe some of the allegations made and submit its findings to a six-member panel formed in March, which included a retired judge and veteran bankers.

“The foundation of SEBI’s suspicion that led to investigations into the overseas entities’ ownership is that they have ‘opaque’ structures,” said the panel in a report dated May 6 and seen by Reuters on Friday.

“The ultimate chain of ownership above the 13 overseas entities is not clear.”

Despite involving various Indian and overseas agencies in the investigation across multiple countries, “SEBI has drawn a blank,” the report said, adding that trying to prove who had invested in foreign portfolio investors who then pumped money into Adani could be an arduous task.

“It is evident that such an exercise could be a voluminous one but potentially a journey without a destination,” the panel said. “… it would be a humongous task to figure out who the ultimate beneficial owner is.”

Adani and SEBI did not immediately respond to requests for comment.

The court on Wednesday granted SEBI additional time until August 14 to complete its investigation into possible violation of securities law and regulatory disclosures by the Adani group. The court initially wanted it done by May 2.

SEBI is investigating alleged breach of related-party transaction rules, public shareholding norms and share price manipulation.

Related-party transaction rules lay down practices to be followed when a listed company is involved in a transaction with another party, while public shareholding norms set out the minimum shareholding of a listed company required to be held by the public.

Beside flagship Adani Enterprises, other group companies include edible oils business Adani Wilmar, Adani Ports, Adani Green Energy, Adani Transmission, Adani Total Gas, Adani Power , broadcaster NDTV and cement units ACC Ltd and Ambuja Cements.

Since the Hindenburg report was released on January 24, those shares are down anywhere between 10 percent and 82 percent.

“While the report may initially boost Adani stocks and investor confidence, the ongoing uncertainty and potential for further revelations from the extended SEBI investigation may continue to impact the group’s market performance,” said Sonam Srivastava, founder at Wright Research.

The panel said, citing SEBI, that there was evidence of a build-up in short positions in Adani group stocks ahead of the Hindenburg report, and profit-taking afterwards.

“Suspicious trading has been observed on the part of six entities,” it said.

It was not possible to conclude whether there had been regulatory failures regarding price manipulations, the panel said.

Read more:

Adani’s utility on course to supply mostly Green Power to Mumbai by 2027

Adani pulls back on grand ambitions in new sectors after Hindenburg report bombshell

Adani stocks advance as group promptly rebuts debt repayment reports

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Crown Prince of Abu Dhabi meets with CEOs of leading Norwegian companies

H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, has met with a group of CEOs from leading Norwegian companies, as part of their participation in the UAE-Norway Investment Forum, held alongside his official visit to the Kingdom of Norway.

During the meeting, H.H. Sheikh Khaled bin Mohamed bin Zayed underscored the UAE leadership’s commitment to strengthening economic cooperation with its international partners.

He highlighted that investment in innovation and knowledge is a cornerstone for achieving sustainable development, noting that enhancing collaboration with Norwegian companies across key sectors will open new avenues for mutual economic growth between the two countries.

The UAE-Norway Investment Forum, taking place in Oslo, aimed to highlight available investment opportunities and strengthen trade relations between the UAE and Norway, fostering shared interests and supporting innovation and knowledge-based economic visions.

-wam

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At the Indonesia International Book Fair 2024, TRENDS inaugurates 10th global office, releases four books

As part of its Asian research tour, partnership with Aletihad News Center, and
primary sponsorship of the Indonesia International Book Fair 2024, TRENDS
Research & Advisory inaugurated its office in Jakarta, marking its 10th location
worldwide. It also released four books in Indonesian.
The inauguration event was attended by ambassadors of the UAE, Bahrain, and
Jordan to Indonesia, chairpersons of the UAE and Indonesian Publishers’
Associations, the Director of TRENDS’ Jakarta office, and a group of researchers
and academics.
Speaking at the event, Dr. Mohammed Abdullah Al-Ali, CEO of TRENDS
Research & Advisory, stated that TRENDS’ international offices—set to reach 15
by the end of 2024—aim to enhance the Center’s research efforts and deepen its
role in disseminating knowledge, thus serving as a global knowledge bridge.
He emphasized, “At TRENDS, we believe in the importance of cooperation
between think tanks and prioritize this endeavor. We believe the TRENDS office in
Jakarta will enhance the exchange of knowledge and ideas between think tanks in
Asia and the Middle East, opening new horizons for collaboration in various
fields.”

Four books in Indonesian
As part of the Jakarta office’s inaugural activities, four books were released in
Indonesian, including the 11th and 12th books of the Muslim Brotherhood
Encyclopedia and Global Trends in AI and Automation and the Future of
Competition between Man and Machine: An Analytical Forward-looking Vision.

Hostility to Arab states
The 11th book of the Muslim Brotherhood Encyclopedia, The Concept of the State
According to the Muslim Brotherhood, highlights its hostile stance toward Arab
states since its inception. The group views them as an obstacle to its ascent to
power. It opposed the modern principles upon which these states were built,
considering them incompatible with the group’s unique interpretation of Islam,
which it claimed to embody exclusively.

Exclusion of nonconformists
The 12th book, The Muslim Brotherhood: Rejection of Tolerance and Exclusion of
Nonconformists, examines the Muslim Brotherhood’s stance towards
nonconformists, individuals, and entities. The book reveals the group’s binary view
of the world, categorizing others as allies or adversaries. It ties these relationships
to the Brotherhood’s internal power struggles and self-serving interests.

Global Trends in AI
The third book, Global Trends in AI, explores significant developments in AI and
its impact on various aspects of life, including the economy, society, and
governance. It also offers a comprehensive analysis of technological advancements
in AI, its applications across sectors, the ethical and social challenges it presents,
and its future trajectory.

Automation

The fourth book, Automation and the Future of Competition between Man and
Machine: An Analytical Forward-looking Vision, addresses the growing challenges
faced by the human workforce in the face of widespread automation and AI
applications. The book concludes that while automation presents a significant
challenge to the labor market, it simultaneously creates new opportunities. It
emphasizes the importance of preparing for this shift through skills development,
continuous education, and adopting economic and social policies that support the
workforce.

Prominent pavilion and active presence
The TRENDS’ pavilion at the Indonesia International Book Fair has attracted
numerous visitors, including academic researchers and officials, such as the
ambassadors of the UAE, Bahrain, Qatar, Jordan, and Turkey. Additionally,
chairpersons of Arab and Indonesian publishers’ associations, authors, publishers,
and students visited the pavilion. All were impressed with and praised TRENDS’ diverse, valuable publications. They also commended TRENDS’ active
international presence and ability to address global developments with rigorous
analytical research.
Dr. Mohammed Abdullah Al-Ali honored the esteemed guests, including
ambassadors of the UAE and Bahrain to Indonesia, Wedha Startesti Yudha,
Chairperson of the Indonesia International Book Fair Committee, Arys Hilman
Nugraha, Chairman of the Indonesian Publishers Association, and others,
presenting them with TRENDS’ publications and commemorative shields.
Additionally, he awarded TRENDS’ Research Medal to Ni Made Ayu Martini
Indonesian Deputy Minister of Marketing, Tourism and Creative Economy
It is worth noting that during its current Asian research tour, TRENDS announced
the launch of the TRENDS Research Medal, awarded to individuals who make
significant contributions to the development of scientific research and promote collaboration with TRENDS in strengthening a culture of research across various fields.

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US determined to prevent full-scale war in Middle East, Joe Biden tells UNGA79

US President Joe Biden highlighted the US Administration’s determination to prevent a wider war that engulfs the entire Middle East region, noting that a diplomatic solution “remains the only path to lasting security to allow the residents from both countries to return to their homes on the border safely”.

In remarks he made today before the 79th Session of the United Nations General Assembly (UNGA79), the US President said, “Full-scale war is not in anyone’s interest,” adding that a diplomatic solution is still possible.

He also touched on “the rise of violence against innocent Palestinians on the West Bank”, and the need to “set the conditions for a better future”, which he said featured “a two-state solution, where the world — where Israel enjoys security and peace and full recognition and normalised relations with all its neighbours, where Palestinians live in security, dignity, and self-determination in a state of their own”.

President Biden underscored the ceasefire and hostage deal put forth by Qatar and Egypt, which the UN Security Council endorsed. He said, “Now is the time for the parties to finalise its terms, bring the hostages home,” adding that this would help ease the suffering in Gaza, and end the war.

-WAM

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