BT Budget Roundtable: 'Regulators are doing their job,' says FM Sitharaman on Adani-Hindenburg row
'I don't think it's right for me go every two weeks and tell them which company to choose. They are taking professional board-driven calls,' says FM on exposure of LIC, SBI to Adani Group
- Feb 6, 2023,
- Updated Feb 7, 2023 1:28 AM IST
Finance Minister Nirmala Sitharaman on Monday weighed on the Adani-Hindenburg row and said "regulators are doing their job". Speaking at the BT Budget Roundtable 2023 in New Delhi, she said, "Regulators in India are doing their job and should be on their toes to do that job. Any disputes on that? Regulators will have to do their job."
When asked about LIC's investment in Adani stocks and SBI's loan book exposure to the embattled conglomerate, Sitharaman said, "Both LIC and SBI have given their statements publicly and in great detail. Their heads themselves came out and spoke about it. There's nothing I can materially add to that. We are allowing them to run professionally."
"I don't think it's right for me go every two weeks and tell them which company to choose. They are taking professional board-driven calls," she added.
She refuted any implication that public banks are taking lackadaisical decisions on loans in the light of the Adani-Hindenburg row.
Shares in billionaire Gautam Adani's companies have been in free-fall since a Jan. 24 critical report by Hindenberg Research, with group cumulative market losses now topping $110 billion, sparking fears of wider financial contagion.
Opposition parties, who last week called for a parliamentary panel to investigate the saga and disrupted proceedings, have questioned Prime Minister Narendra Modi's closeness with Adani.
Meanwhile, a Reuters report on Monday said Securities and Exchange Board of India (SEBI) has written to various custodian banks asking for details on beneficial owners of offshore funds and foreign portfolio investors (FPIs), two sources directly aware of the matter said.
While not unprecedented, the move comes after a scathing attack by US short-seller Hindenburg Research on the Adani Group, alleging improper use of offshore tax havens and stock manipulation. The conglomerate denies all allegations.
However, the report lead to a market rout where seven Adani group companies lost more than $100 billion since January 24.
Foreign investors offloaded Indian equities worth Rs 28,850 crore in January, data showed.
Finance Minister Nirmala Sitharaman on Monday weighed on the Adani-Hindenburg row and said "regulators are doing their job". Speaking at the BT Budget Roundtable 2023 in New Delhi, she said, "Regulators in India are doing their job and should be on their toes to do that job. Any disputes on that? Regulators will have to do their job."
When asked about LIC's investment in Adani stocks and SBI's loan book exposure to the embattled conglomerate, Sitharaman said, "Both LIC and SBI have given their statements publicly and in great detail. Their heads themselves came out and spoke about it. There's nothing I can materially add to that. We are allowing them to run professionally."
"I don't think it's right for me go every two weeks and tell them which company to choose. They are taking professional board-driven calls," she added.
She refuted any implication that public banks are taking lackadaisical decisions on loans in the light of the Adani-Hindenburg row.
Shares in billionaire Gautam Adani's companies have been in free-fall since a Jan. 24 critical report by Hindenberg Research, with group cumulative market losses now topping $110 billion, sparking fears of wider financial contagion.
Opposition parties, who last week called for a parliamentary panel to investigate the saga and disrupted proceedings, have questioned Prime Minister Narendra Modi's closeness with Adani.
Meanwhile, a Reuters report on Monday said Securities and Exchange Board of India (SEBI) has written to various custodian banks asking for details on beneficial owners of offshore funds and foreign portfolio investors (FPIs), two sources directly aware of the matter said.
While not unprecedented, the move comes after a scathing attack by US short-seller Hindenburg Research on the Adani Group, alleging improper use of offshore tax havens and stock manipulation. The conglomerate denies all allegations.
However, the report lead to a market rout where seven Adani group companies lost more than $100 billion since January 24.
Foreign investors offloaded Indian equities worth Rs 28,850 crore in January, data showed.