Finance Minister Nirmala Sitharaman on Adani issue

 New Delhi: Finance Minister Nirmala Sitharaman said on Saturday that the government will let the regulators handle the allegations of fraud against the Adani Group, which have triggered an unprecedented stock market sell-off.

                        

                                         Nirmala Sitharaman said Indian regulators were equipped to deal with the Adani situation

                        

 

"Regulators will carry out their duties. The Reserve Bank commented on it yesterday. Before that, the banks and the LIC have come out and stated their level of exposure. As a result, the regulators will do their jobs "Ms. Sitharaman stated during a news conference in Mumbai.

 "And regulators are independent of the government... and they are left to do what is necessary to keep the markets regulated in top condition. The SEBI (Securities and Exchange Board of India) has the resources to maintain that prime condition "She stated.

 The Finance Minister also dismissed questions about the Adani Group canceling a new share sale in the aftermath of the stock market crash, saying, "How many times have FPOs (Follow on Public Offers) left this country, and how many times has India's image suffered as a result? And how many times have the FPOs failed to return?"

 Her statement comes after the Adani Group was accused by US short-seller Hindenburg Research, which makes money by betting on stock prices falling.

 The conglomerate has denied the allegations, claiming that the short-claim seller's stock manipulation has "no basis" and stems from a lack of understanding of Indian law.

 Hindenburg's report triggered a stock rout in Adani Group's seven publicly traded companies, which have collectively lost more than $100 billion, or roughly half of their market value.

 The Reserve Bank of India (RBI) said on Friday in the statement referred to by the Finance Minister that the country's banking system remains resilient and stable despite concerns about the risk to Indian banks from the collapse of Adani stocks.

 The Reserve Bank of India (RBI) said on Friday in the statement referred to by the Finance Minister that the country's banking system remains resilient and stable despite concerns about the risk to Indian banks from the collapse of Adani stocks.

 "Various capital adequacy, asset quality, liquidity, provision coverage, and profitability parameters are all in good shape. Banks are also following the RBI's Large Exposure Framework guidelines "According to the central bank.

 The RBI added in its statement, without naming the Adani Group, that it remains vigilant and continues to monitor the stability of the Indian banking sector.

 The opposition has slammed the government, demanding a debate in parliament and an investigation into the charges against the ports-to-energy conglomerate.