Shares of four companies of Adani Group fell and dragged down the benchmark indices on Monday, upsetting the investors. Adani Group stocks, including Adani Enterprises, Adani Power, Adani Green Energy, Adani Ports, Adani Total Gas, and Adani Transmission, hit a lower circuit of 20% on Monday. Adani Ports and Adani Enterprises were both down 13%, while Adani Power, Adani Transmission, and Adani Green Energy plunged by 5% each. Adani Total Gas is also down 5%.

Adani Group chairman Gautam Adani is India’s second richest man after Reliance chairman Mukesh Ambani. 

Here’s why the stocks fell:

• National Securities Depository Ltd (NSDL), India securities depository, froze accounts of three foreign funds, including Albula Investment Fund, Cresta Fund and APMS Investment Fund.

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• These funds own over Rs 43,500 crore worth of shares in four Adani Group companies. As a result, the funds would not be able to sell any securities.

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• According to The Economic Times, these accounts were frozen on or before May 31.

• According to the report, NSDL’s froze the account because of insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act (PMLA).

• The three funds are all based in Mauritius capital of Port Louis

• They hold 6.82% in Adani Enterprises, 8.03% in Adani Transmission, 5.92% in Adani Total Gas, and 3.58% in Adani Green.

• Market regulator Sebi is also investigating Adani Group stocks for price manipulation as the shares have gained between 200% to 1000% in just one year.

• Shares of Adani Transmission have risen by 669%, while Adani Power is up by 295%.