Union Finance Minister Nirmala Sitharaman on Saturday reacted to the Adani Group stocks rout and said that the regulators will do their job. She stated that RBI, banks and LIC have themselves come out to say their exposure to Adani Group.”It will be regulators who will do their job. RBI made a statement, and prior to that banks, and LIC came out and told about their exposure (to Adani group).
Regulators independent of government, they are left to themselves to do what is appropriate so the market is well regulated,” Sitharaman said in a press conference. She added, “So the regulators will do their jobs. Actually, for keeping the market regulated well in prime condition, the SEBI is the authority and it has the wherewithal to keep that prime condition intact.”
The Finance Minister said that FPOs come and get out and these fluctuations are there in every market. “But the fact that we have had 8 Billion come (Foreign Exchange Reserve) in these last few days proves that the perception about India and its inherent strength is intact,” she said.
The Adain Group shares have seen wide fluctuation since US-based short-seller group Hindenburg came out with a report making a slew of allegations against the conglomerate. The Adani Group, chaired by Gautam Adani, has called the report ‘rife with conflict of interest’.
In a statement issued on Friday, the Reserve Bank of India (RBI) said, “There have been media reports expressing concern about the exposure of Indian banks to a business conglomerate. As the regulator and supervisor, RBI mantains a constant vigil on the banking sector and on individual banks to maintain financial stability.”
SBI chairman Dinesh Kumar Khara said the public sector bank does not envisage any challenge due to the Adani stocks rout. Khara added the bank’s overall exposure is 0.88% of the overall loan book as on December 31, 2022. Life Insurance Corporation (LIC) had said, “All the investments of the LIC including in equities are made following the company’s risk management framework.”
