Barred or not? Adani investors fret over three Mauritius-based funds

Confusion over three Mauritius-based funds that whipsawed shares of companies controlled by Indian billionaire Gautam Adani this week has underscored a deeper risk for investors in such stocks owned by opaque entities.

Shares of Adani’s firms nosedived Monday after a local media report said accounts of these funds — owning about $6 billion of shares across the conglomerate — were frozen by India’s national share depository. The Economic Times said the action was taken probably due to insufficient information on the owners, citing people it didn’t identify. The stocks recouped losses after the conglomerate refuted it. A Tuesday filing stoked doubts again after Adani group said the three funds were facing some suspension due to a years-old regulatory order.