Rule 19A
What is Rule 19A?
Rule 19A of the Securities Contracts (Regulation) Rules 1957, inserted through an amendment made with effect from June 4, 2010 under “Continuous Listing Requirement”.
It stipulates that every company listed in the Indian stock market has to maintain at least 25 percent public shareholding.
“Public” is defined in the said Rules as persons other than “the promoter and promoter group” — defined as any spouse of that person, or any parent, brother, sister or child of the person or of the spouse, besides “subsidiaries or associates of the company”.
This 25 per cent minimum threshold for public shareholding vitally ensures that adequate shares of a listed company is available for trading in the stock market to enable price discovery.
Violations of this rule indicate likely stock price manipulation and insider trading, jeopardising the integrity of the equity market.
OCCRP
Organized Crime and Corruption Reporting Project (OCCRP)
The Organized Crime and Corruption Reporting Project (OCCRP) is a global network of investigative journalists with staff on six continents.
It was founded in 2006 and specializes in organized crime and corruption.
It publishes its stories through local media and in English and Russian through its website.
OCCRP works with and supports 50+ independent media outlets in Europe, Africa, the Caucasus, and Central Asia.
The entity was involved in the coverage of Pegasus spyware as well as Panama Papers leak.
OCCRP’s Report on Adani Group
The OCCRP conducted research and published a report on the Adani Group (AG).
The OCCRP report claimed that Mauritius-based ‘opaque’ funds were used to invest millions of dollars in public traded group stocks of AG and it happened under the ‘guidance’ of partners linked to promoter’s family.
The OCCRP report claims that it unearthed at least 2 cases where 'mysterious' investors bought & sold Adani shares via offshore structures.
In its report, it named two persons with long-terms ties with Adani family and how they 'colluded' in buying & selling Adani stocks through offshore structures and in turn raked in huge profits from dubious dealings.
OCCRP's report comes eight months after the US-based Hindenburg Research accused the Adani Group of improper business dealings, citing offshore entities in tax havens.
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