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

sources familiar with the matter reported that  the FCA is looking into potential UK ties around Elara even though the allegations largely centre on group firms outside of the UK.

The FCA is looking into Elara as Jo Johnson, brother of former UK Prime Minister Boris Johnson, steps down from the board of the business. As the price of Adani shares fell on February 1, Jo Johnson made his resignation public.
The source said that the FCA's justification emphasised that the Adani Enterprises deal involved stocks of an Indian listed company. Livemint was unable to independently confirm the events.

Raj Bhatt, the CEO and founder of Elara, established the business in 2002 with the main objective of acquiring capital for Indian corporations. Elara Capital has other locations in 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.

In an effort to stop its price from falling after the collapse, Adani Enterprises cancelled a $2 billion Follow-on Public Offering (FPO) and responded against Hindenburg's allegations. Johnson announced his departure from the business on the same day that the Adani Group announced the FPO's cancellation.

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

Adani's market value has dropped by more over USD 100 billion since the news on January 24. Adani has denied all allegations.

US-based Hindenburg Research brought up Elara in a study that cast doubt on the Adani Group's financial soundness. The allegations of financial malfeasance at Adani have been denied by the Indian corporation, but they have prompted a stock rout across all of the Adani entities.

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