After the Hindenburg report came out, the shares of Adani Group companies fell by more than 50 percent. Due to falling stocks, the tension of investors is increasing everyday. For the investors, from the government to SEBI has clarified the situation by issuing statements.
The falling shares of Adani Group have given investors sleepless nights. After the Hindenburg report, the market capitalization (Mcap) of the companies has halved due to the breakdown of Adani Group’s shares. Meanwhile, from the government to the Reserve Bank has issued a statement and clarified its position. SEBI has also issued a statement and has kept its point on the condition of the stock market. New York-based short-selling firm Hindenburg Research published its report on Adani group companies on January 24, accusing the group of engaging in stock manipulation and accounting fraud over decades
POs have been withdrawn earlier also
On Saturday, Finance Minister Nirmala Sitharaman gave a statement on the matter of falling shares of Adani Group. He said that India’s situation has not been affected in any way. The Finance Minister said that our foreign exchange reserves have increased to $8 million in the last two days. FII’s and FPO’s come and go, but India’s image and position has not been affected by Adani’s case. He said that the regulators will do their work. Also said that FPOs have been withdrawn earlier also
Stable banking system
During the fall in Adani Group‘s shares, the Reserve Bank of India (RBI) has issued instructions to all banks in the country asking for information about loans given to Adani Group. Apart from this, while addressing the concerns of the investors, the central bank has said that the country’s banking system remains flexible and stable. The country’s largest bank State Bank of India (SBI) said on Friday that it has given a loan of about Rs 27,000 crore to Adani Group companies. This is just 0.88 per cent of its overall exposure. Punjab National Bank (PNB) said that it has a total debt of Rs 7,000 crore on the Adani group
Monitoring system in place
In a press release on February 4 on the falling shares of Adani Group, SEBI said that we want to maintain the orderly and efficient functioning of the market. There is also a publicly monitored system to address excessive volatility in specific stocks. SEBI said that the monitoring system is automatically triggered with certain conditions when there is a huge fluctuation in the prices of any stock.
Reply of Adani Group
Responding to Hindenburg’s allegation, the Adani Group said the report was driven by the “ulterior ‘motive’ of creating a ‘false impression’ so that the US firm could get financial benefits.” Adani Group said that many of these 88 questions are such that they do not tell anything new. They are just repeating those old things which have been proved wrong in the judicial process.
