After tanking 25 percent in early trade on Monday, shares of the Adani Group flagship company Adani Enterprises Ltd reduced losses, still trading around 12 percent lower. The stock went into a tailspin in morning trade, locked in its lower price band, on reports the National Securities Depository Ltd (NSDL) blocked the accounts of three foreign funds that own shares in four of the listed Adani companies.

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NSDL has frozen the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund, which together own more than Rs 43,500 crore worth of shares in Adani Enterprises, Adani Green Energy, Adani Transmission and Adani Total Gas. As per the NSDL website, these accounts were frozen on or prior to May 31, an Economic Times report said.

These funds are based out of Mauritius and are registered with the Securities and Exchange Board of India (SEBI) under the category of foreign portfolio investors (FPIs).

Read here:

NSDL freezes accounts of three FPIs owning Adani Group shares worth Rs 43,500 cr

This freeze could be due to disclosure of insufficient information on beneficial ownership as mandated by the Prevention of Money Laundering Act (PMLA), top officials from custodian banks and law firms dealing with foreign investors told the newspaper.

As per the report, all three of them registered under the same address in Port Louis have a holding of 6.82 percent in Adani Enterprises, 8.03 percent in Adani Transmission, 5.92 percent in Adani Total Gas and 3.58 percent in Adani Green.

Read here: Adani Group shares plunge 5-25% on reports of NSDL freezing 3 foreign funds' accounts

Further, the report also said that SEBI is investigating if there was any price manipulation in Adani Group stocks.

The prices of Adani Group stocks gained between 200 percent and 1000 percent in the past one year.

The stock price of Adani Enterprises has gained almost 60 percent in the last three months, while it is up over 197 percent YTD. In the last one year, the stock price has rallied more than 837 percent.

At 1:50 pm, the shares of Adani Enterprises were trading 11.39 percent lower at Rs 1,419.10 apiece on the BSE.

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(Edited by : Ajay Vaishnav)