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Adani crash won't affect investor confidence, Indian markets well regulated: Nirmala Sitharaman

05:12 PM Feb 03, 2023 IST | APN Live
adani crash won t affect investor confidence  indian markets well regulated  nirmala sitharaman

Union Finance Minister Nirmala Sitharaman on Friday assured that India’s markets were “well regulated” and she does not expect the rout Adani Group’s shares to adversely affect confidence of potential investors.


Adani Group has endured over $120 billion in market losses- nearly half of the conglomerate’s estimated value—since the damning report released by US short-seller Hindenburg Research last week.

Sitharaman told the media that India remained a ‘very well-regulated financial market” and “an absolutely well governed’ nation. She said the public sector financial institutions had released detailed statements showing they had limited exposure to Adani Group and would not be significantly affected by its downward spiral.


Sitharaman dismissed the narrative that Adani Group’s plunging shares would have a negative effect on Indian markets in general and pointed out that one instance, however much talked about across the globe, is not an indication of how well Indian financial markets are governed.

She maintained that “investor confidence which existed before shall continue even now.”


Hindenburg Research published a report last week, accusing the Adani Group of indulging in improper use of offshore tax havens and stock manipulation while also raising concerns about high debt and the valuations of seven listed Adani companies.

The group has denied the allegations, saying the short-seller’s narrative of stock manipulation has “no basis” and stems from an ignorance of Indian law, adding that it has always made the necessary regulatory disclosures.

Hindenburg Research hit back at the Adani Group, day after the business house dubbed the New York-based firm’s report as “calculated attack on India.”

In a response titled “Fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised,” Hindenburg Research accused the Adani Group of holding back India’s progress by draping itself in the Indian flag while systematically looting the nation.

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