Home / News / World /  Adani’s London connection under scrutiny as UK watchdog launches probe: Report

Elara Capital, a London-based company reported to have connections to Adani Group, and the Indian conglomerate itself are being watched by the Financial Conduct Authority (FCA) in the UK.

Although the allegations mostly centre on group firms outside of the UK, the FCA is looking into potential UK connections around Elara, according to sources familiar with the situation who spoke to Financial News.

As former UK prime minister Boris Johnson's brother Jo leaves his board at the company, the FCA is looking into Elara. On February 1, Jo Johnson announced his resignation as the Adani stock tumbled.

Also Read: As Adani shares tank further, here's look at what is at stake

The individual with knowledge of the FCA's reasoning pointed out that the Adani Enterprises sale concerned securities of an Indian listed firm. Livemint could not independently verify the developments.

Raj Bhatt, CEO and head of Elara, founded the company in 2002 with the primary goal of raising financing for Indian corporates. Additional locations for Elara Capital include Singapore, Mauritius, New York, Ahmedabad and Mumbai. On its website, it lists asset management, sales and trading, research and analysis, and investment banking as some of its services.

Following the rout, Adani Enterprises cancelled a $2 billion Follow-on Public Offering (FPO) and retaliated against Hindenburg's claims in an effort to stop its declining price. On the same day that the Adani Group announced the cancellation of the FPO, Johnson announced his resignation from the company.

Also Read: Short-selling Adani Stocks not easy in India: Here's why

“I now recognise that this is a role that requires greater domain expertise in specialised areas of financial regulation than I anticipated and, accordingly, I have resigned from the board," Johnson said.

Since the report on January 24, Adani's market value has decreased by more than $100 billion. Adani has refuted all charges.

Elara was mentioned by US-based Hindenburg Research in a study raising doubts about the Adani Group's financial stability. The Indian company has refuted the short seller's charges of financial fraud at Adani, but they have caused a stock rout across all of the Adani entities.

Sounak Mukhopadhyay
Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and social media. Before working with digital news publications, he worked as a freelance content writer.
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