Regulators Will Do Their Job; India’s Image Intact: Finance Minister Sitharaman On Adani Row

Union Finance Minister Nirmala Sitharaman on Saturday said the regulators will do their job on the allegations of financial wrongdoings by the Adani Group.

New Delhi: Union Finance Minister Nirmala Sitharaman on Saturday said the regulators will do their job with no interference from government on the allegations of financial wrongdoings by the Adani Group. Sitharaman also said that India’s macro fundamentals and economic image are not affected by the Adani Group’s withdrawal of its Rs 20,000 crore FPO.

In the last two days alone, $8 billion in forex came in, the finance minister said during a post-Budget press conference. “Our macro economic fundamentals or our economy’s image, none of which has been affected. Yes, FPOs (follow-on public offers) come in, and FIIs get out,” Sitharaman told reporters here.

FM Nirmala Sitharaman said the regulators will do their job on the Adani issue. The Securities and Exchange Board of India (Sebi) has the wherewithal to ensure the stability of markets.

Nirmala Sitharaman said there are “fluctuations” in every market but the accretion over the last few days establishes the fact that the perception of both India and its inherent strengths is intact.

Answering a broader question on the allegations against Adani Group, she said the country’s independent financial sector regulators will be looking into the aspect and added that capital markets watchdog Securities and Exchange Board of India has the wherewithal to ensure stability in markets. “…for keeping the market and the markets regulated in prime condition, the Sebi is the authority. And it has the wherewithal to keep that prime condition,” she said.

The finance minister also said that the RBI has already spoken out on the issue, referring to Friday’s statement, which said the banking sector is resilient and stable.

About ten days ago, US-based short seller Hindenberg Research made a slew of allegations on the corporate governance front against Adani Group. The Ahmedabad-based group has denied all the allegations and termed it as a calculated attack on India. It has cancelled the FPO even after managing subscriptions to it.