OPG being investigated for alleged regulatory non-compliance

OPG Power Ventures said on Friday that it was the subject of an investigation into alleged regulatory non-compliance under the Foreign Exchange Management Act (FEMA).

FEMA regulates foreign exchange transactions by Indian entities or with non-residents, including foreign direct investment into India and overseas investment by Indian companies.

The AIM-listed company - which develops and operates power generation assets in India - said it considers it has undertaken "all material transactions, following professional advice on compliance with FEMA and is confident that it has been compliant".

OPG said it will cooperate fully with the investigation.

"The group's plants continue to operate as usual and the group does not anticipate any material impact of the investigation process on the group," it said. "The group considers that it has a robust track record of corporate governance and compliance and has full faith and confidence in the regulatory system of India."

Further announcements will be made, in due course, as appropriate, it added.

At 1345 GMT, the shares were down 22% to 7p.