Citigroup Inc's wealth unit halts margin loans on Adani securities

The bank said in the memo it has decided to remove lending value "to all Adani issued securities with immediate effect"

Citigroup Inc.’s wealth arm has stopped accepting securities of Gautam Adani’s group of firms as collateral for margin loans as banks ramp up scrutiny of the Indian tycoon’s finances following allegations of fraud by short seller Hindenburg Research. 
 

The US lender’s move to restrict lending comes after a similar change at Credit Suisse Group AG, as Adani’s beleaguered empire becomes further engulfed in crisis.

“In recent days, we have seen a dramatic price drop of Adani issued securities,” Citigroup said in an internal memo seen by Bloomberg News. “Stock and bond prices have plummeted following the negative news around the