Rajiv Jain’s GQG Partners has achieved a remarkable profit of Rs 10,000 crore from its investments in Adani stocks, bringing the total investment value to an impressive Rs 25,000 crore.
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GQG rode to the Adani Group’s rescue in 2023 and invested an estimated $4.6 billion after the group’s shares were battered by the revelations in the Hindenburg Research report
US-based NRI investor Rajiv Jain’s GQG Partners, recognized in India for its investments in Adani stocks, has been accused by the US Securities and Exchange Commission (SEC) of breaching whistleblower protection regulations. The investment firm has consented to resolve the allegations by paying a penalty of $500,000.
According to the SEC’s order, GQG contravened whistleblower protection Rule 21F-17(a), which forbids any actions that would hinder an individual from directly communicating with SEC personnel regarding potential violations of securities laws.
GQG Partners, which allocated several billion dollars to the Adani Group in the previous year, has consented to pay a fine of $500,000 to the U.S. regulatory authority for breaching the so-called ‘whistleblower rules.’ These regulations are intended to safeguard individuals who report possible violations of securities laws to the U.S. Securities and Exchange Commission (SEC). The SEC has accused GQG of entering into non-disclosure agreements with twelve prospective hires, which restricted them from revealing confidential information regarding GQG, including to governmental bodies.
In 2023, GQG emerged as a significant supporter of the Adani Group, making an estimated investment of $4.6 billion. This financial infusion followed a tumultuous period for the Adani Group, during which its shares suffered substantial losses due to a report from a US hedge fund that accused the conglomerate of egregious fraud and manipulation of share prices. The group’s valuation plummeted by nearly $100 billion in the wake of the report, which was vehemently denied by Adani Group in response to the allegations made by Hindenburg Research.
Corey Schuster, co-chief of the SEC’s Asset Management Unit, stated, “Whether through agreements or otherwise, firms cannot impose barriers to persons providing evidence about possible securities law violations to the SEC, as GQG did.”
In a particular instance, the SEC indicated that GQG had entered into a non-disclosure agreement with an employee who had expressed an intention to report purported violations of securities laws to the SEC. The SEC report states: “GQG also reached a settlement agreement with a former employee whose legal counsel informed GQG of the intention to report alleged securities law violations to the Commission.” GQG is believed to have achieved substantial returns from its investments in six companies within the Adani Group, primarily during 2023.
One estimate suggests that it invested $4.6 billion, which is now considered to be valued at approximately $12 billion based on current assessments. Gautam Adani, the head of the group, is currently estimated to have a net worth of around $84.4 billion, according to the Forbes Real-Time Billionaires list, which monitors the fluctuations in the wealth of the world’s richest individuals. Conversely, the Bloomberg Billionaires Index, which also tracks real-time changes in wealth, estimates Gautam Adani’s net worth at $105 billion.
Both wealth measurement platforms identify him as India’s second-richest individual, following Mukesh Ambani. GQG Partners, headquartered in Fort Lauderdale, USA, characterizes itself as an “adaptable boutique investment manager committed to performance, growth, and the incorporation of diverse perspectives for discerning investors.” GQG reports having assets under management totaling $155 billion.
Rajiv Jain serves as the founder and chief investment officer of the firm, which invests in emerging and other global markets.
The order issued by the SEC indicated that GQG breached whistleblower protection Rule 21F-17(a), which forbids any actions that would hinder an individual from directly communicating with SEC personnel regarding potential violations of securities laws. GQG has stated that, while neither admitting nor denying the SEC’s conclusions, it has “consented to be censured, to refrain from further violations of the whistleblower protection rule, and to pay a civil penalty of $500,000.”
