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Explainer: What next for Adani-linked FPIs post settlement plea?

Money Control · 6m

Eight foreign portfolio investors (FPIs) with past exposure to Adani Group companies have filed settlement applications with the Securities Exchange Board of India (Sebi) to close pending investigations. Sebi has been looking into whether the FPIs breached any market rules. If the settlement applications are approved, the FPIs will pay a fine to settle the cases. However, Sebi has the power to reject the applications and conclude the investigation with final quasi-judicial orders. The FPIs would then have the opportunity to appeal these orders in higher judicial forums. The cases are unlikely to have a significant impact on the Indian markets or retail investors, as the FPIs have already reduced their exposure to the Adani Group.