SINGAPORE: Citigroup’s wealth unit has stopped extending margin loans to its clients against securities of India’s embattled Adani group, a source with direct knowledge of the matter said, as the conglomerate reels from a short-seller attack.

The group’s flagship firm Adani Enterprises called off its $2.5 billion share sale in a dramatic reversal on Wednesday as a rout sparked by the US short-seller’s criticisms wiped billions more off the value of the Indian tycoon’s stocks.

Adani Enterprises calls off $2.5bn share sale

Citi’s wealth unit decided to cut the loan-to-value ratio for credit against Adani securities to zero on Thursday, said the source, who declined to be named due to the sensitivity of the matter.

Citi declined to comment.