Vivid News 24: The government would let the authorities handle the claims of fraud against the Adani Group, which have caused an unprecedented sell-off in the stock market, according to Finance Minister Nirmala Sitharaman on Saturday.
“Regulators will carry out their duties. Yesterday, the Reserve Bank provided you with a response. Before that, the banks and the LIC have publicly disclosed the extent of their involvement. Thus, the regulators will carry out their duties “In Mumbai, Ms. Sitharaman stated at a news conference.
“Additionally, regulators are autonomous from the government and are free to take the necessary actions to maintain the integrity of the markets they are responsible for regulating. The SEBI (Securities and Exchange Board of India) is equipped to maintain that ideal state “She spoke.
In response to inquiries regarding the Adani Group canceling a new share offer following the stock market crisis, the finance minister said, “How frequently have FPO (Follow on Public Offers) left this nation, and how frequently did India’s reputation suffers as a result? And how often have the FPOs failed to return?”
Also Read Adani crisis: Reserve Bank of India says, “The banking sector is resilient and stable”
Her words follow those of US short-seller Hindenburg Research, which last week accused the Adani Group of improperly using tax havens and stock manipulation while also raising worries about the group’s excessive debt levels. Hindenburg Research profits by betting on shares decreasing.
The conglomerate has refuted the allegations, claiming that the stock manipulation claim made by the short seller has “no validity” and is the result of a misunderstanding of Indian law. The seven publicly traded companies of the Adani Group have seen a stock rout as a result of the Hindenburg report, losing more than $100 billion in total, or over half of their market worth.
In the statement to which the Finance Minister referred, the Reserve Bank of India (RBI) stated that despite worries about the danger that the decline in Adani shares poses to Indian banks, the nation’s banking system is still robust and stable. “Numerous indicators of adequate capital, high-quality assets, liquidity, provision coverage, and profitability are positive. Additionally, banks abide under the RBI’s Large Exposure Framework requirements “stated the central bank.
The RBI stated in its statement that it remained alert and kept track of the soundness of the Indian banking system without specifically mentioning the Adani Group. The opposition has been critical of the government and has called for a parliamentary debate and a probe into the allegations against the ports-to-energy business.
