According to allegations of fraud against the Adani group, which have caused an unheard-of stock market selloff, Finance Minister Nirmala Sitharaman stated on Saturday that the Government would let authorities do their job.
The stock market regulator, the Securities and Exchange Board of India (SEBI), is already probing the allegations. The group denied it inflated profit, and SEBI has already clarified the matter. “The Government will permit the regulators to carry out their jobs,” Sitharaman continued. The Government doesn’t need to issue any statements.” Sitharaman has already stated that the Government anticipates law enforcement authorities to have a role in fraud cases.
“Regulators will do their job. Reserve Bank commented on this yesterday. And earlier, banks and LIC came forward with their risk appetite. So regulators will do their job.” Ms. Sitharaman said at a press meeting in Mumbai.
Additionally, the regulatory bodies are free to take whatever steps are required to maintain the integrity of the regulated markets and are not subject to governmental oversight. SEBI (Securities and Exchange Board of India) has the tools necessary to preserve those ideal conditions, according to the speaker.
The finance minister also dismissed questions on the cancellation of a new share sale by the Adani group in the wake of the fall in the stock, saying: “How many times have FPOs (monitored public offers) withdrawn from this country? And how many The bar did.” Has the image been removed? Has India suffered because of this? And how many times have FPOs yet to return?
His statement came after US-based short seller Hindenburg Research, which bets on falling stocks, accused the Adani group of tax haven abuse and stock manipulation last week, expressing concern. Due to high debt level.
The group has refuted the accusations, claiming that the claim that short sellers are manipulating the stock has “no validity” and is based on a misunderstanding of Indian law.
Facing allegations of rigging share prices, Adani Group said the allegations are baseless and without any basis. “The claims are unfounded and untrue, the group claimed. “He continued, “The Adani Group is a law-abiding business, and its various entities have always followed fully all applicable laws and regulations.”
The group alleges to have manipulated its shares to create panic in the market with “false and baseless” news. The Government of India has also rejected the allegations. “The Government will do its job. The regulators will do their job. They will look into all these issues. I am sure the Adani group will also look into everything,” Economic Affairs Secretary Subhash Chandra Garg told reporters.
The shares of seven traded Adani Group firms have lost more than $100 billion, or roughly half of their market value, due to the Hindenburg report.
The Reserve Bank of India (RBI) said in a statement cited by the finance minister that despite worries about risks to Indian banks, the nation’s banking sector is still robust and stable. Shares of Adani are declining.
“Positive signs can see in the indices for sufficient capital, asset quality, liquidity, coverage of provisions, and profitability. The bank also complies with the macro risk framework’s standards “. Central.
RBI has issued a statement saying it remains vigilant and continues monitoring the stability of the Indian banking sector. He did not specifically mention the Adani group.
The opposition has attacked the Government and called for a parliamentary discussion and an investigation into the accusations against the energy ports organization.
In a series of tweets, the finance minister said: “Government is aware of the investigation regarding Adani Group promoters and is closely following the developments. Regulators will do their job. The Government will take necessary action if anything wrong find.”,