Nirmala Sitharaman reacts to Adani row, says India's regulators are on their toes
Finance Minister Nirmala Sitharaman reacted to the ongoing Adani vs Hindenburg row during the post-Budget meeting with the Central Board of Directors of the Reserve Bank of India. Reacting to the Supreme Court’s concerns for the markets amid the Adani row, the Finance Minister said Indian regulators are experienced experts and are on their toes.
Saturday, during the meeting, Sitharaman said she would leave the matter to them and would not reveal what she is about to say in Court over the issue.
The Apex Court on Friday raised concerns over the market and said the interests of Indian investors need to be protected against market volatility amid the Adani stocks rout. The Court also advised the Centre to set up a panel of domain experts headed by a former judge and work on strengthening the regulatory mechanisms.
A bench comprising the Chief Justice of India DY Chandrachud, and justices PS Narasimha and JB Pardiwala said if the government is willing to accede to setting up an expert body for an overall assessment of the situation, necessary statements can be made to that effect for constitution of a committee to that end.
Gautam Adani has been accused of manipulating stocks and fraud by the US-based Hindenburg research. In January, Hindenburg Research slammed the Indian conglomerate ahead of the Adani Enterprises share sale, setting off an $86 billion rout in the domestically listed stocks and a sell-off in its bonds listed overseas.
A few weeks ago, Adani was the world’s third-richest man who dropped down the ranks to number 15 on the Forbes rich list after the report was released in January.
The Hindenburg report revealed that it holds short positions in Adani companies through US-traded bonds and non-Indian-traded derivatives. It also alleged improper use of tax havens and raised concerns about debt levels.