Markets regulator found that a dozen offshore funds invested in Adani Group companies were in violation of disclosure rules and in breach of investment limits, two people with direct knowledge of the matter said on Monday.

They declined to be named as they were not authorised to speak to the media.

The Securities and Exchange Board of India (SEBI) and the Adani Group did not immediately respond to emailed requests for comment.

The Reuters had first reported that the SEBI had uncovered violation of rules on disclosures by listed entities and limits on the holdings of offshore funds in August last year.

The regulator was also looking into the Adani Group’s ties with one of the funds to determine whether it could be seen acting “in concert” with the conglomerate’s key shareholders, an accusation Adani has rejected in the past.

The regulator earlier this year had sent notices to a dozen Adani Group’s offshore investors outlining the charges and asking them to explain their positions on the disclosure violations and breach of investment limits, the sources said.

“The offshore funds were reporting their investment in Adani Group companies at individual fund level. Regulator wanted the disclosure of holding at offshore fund group level,” said the first of the two sources.

Eight of these offshore funds have approached the regulator via written request to settle the charges by paying a penalty without admission of guilt, the sources added.