Sebi spurns settlement bids from 13 foreign funds in Adani case

The Securities and Exchange Board of India (Sebi) has turned down compromise proposals from 13 foreign funds involved in its investigation into the Adani Group, according to regulatory sources. The rejections stem from the funds' unwillingness to comply with key settlement conditions set by the regulator.

Among the stumbling blocks were disputes over information disclosure. Several of the funds resisted providing data that Sebi deemed essential for resolving the matter, complicating settlement negotiations. Additionally, a number of the applicants objected to the regulator's demands that they return or disgorge profits allegedly derived from improper dealings.

The rejections mark a setback in Sebi's efforts to resolve multiple fronts of its sprawling investigation into the Adani Group conglomerate. The regulator has been pursuing allegations related to alleged securities law violations and market manipulation. By declining these settlement overtures, Sebi has signaled its intention to pursue enforcement action against the foreign funds should they continue to resist compliance.

The development underscores the regulatory challenges facing overseas investors navigating Indian market enforcement actions, particularly when substantial financial remedies are at stake. Sebi's firm stance suggests the regulator is unlikely to water down its demands in future settlement discussions with the remaining parties under investigation.