After Credit Suisse, Citigroup stops accepting Adani Group securities

New Delhi: Citigroup's wealth management division has stopped accepting Adani Group securities as collateral for margin loans.

This comes as banks are increasing their examination of the company's finances following an accusation of stock manipulation and fraud by the Hindenburg report.

According to a report by Bloomberg, Citigroup reportedly stated in an internal memo that they have observed a significant decrease in the value of Adani-issued securities, leading to their decision to remove lending value to these securities immediately.

Credit Suisse Group has also made a similar move. The private banking arm of Credit Suisse AG has stopped accepting bonds of some of the group entities of Adani Group -- Adani Ports & SEZ, Adani Green Energy, and Adani Electricity Mumbai – as collateral for margin loans.

Adani Enterprises announced that it would withdraw its fully-subscribed public offer due to "unprecedented situation and market volatility" and to protect the interests of its investors.

The company's stock fell 28.5% in Wednesday's trading.

Gautam Adani, in a video statement, thanked investors for their support and stated that the interest of investors is his top priority.