NEW DELHI: Market regulator Securities and Exchange Board of India (SEBI) has undertaken an investigation with regard to the allegations made against Adani Group by Hindenburg Research, minister of state for finance, Pankaj Chaudhary said Monday in the Lok Sabha.
Adani Group’s nine listed companies witnessed a 60 per cent plunge in their market capitalisation between January 24 and March 1. “As per its mandate, it conducts investigations into any alleged violations of its regulations by any market entity. It is, accordingly, undertaking an investigation into the market allegations against the Adani Group of companies,” said Chaudhury in the lower house of the Parliament.
According to Chaudhary, “the volatility in the stocks of these companies has not had any major impact at the systemic level. Nifty 50 declined by around 4.5 per cent during the same period.” In its order dated March 2, 2023, the Supreme Court directed SEBI to conclude the ongoing investigations into the Adani Group within two months.
Chaudhary informed that the investigations pertaining to imports of power generation, power transmission and infrastructure (port & SEZ) equipment by Adani Group companies have been concluded by the Directorate of Revenue Intelligence (DRI) and the report has been submitted before the relevant judicial authorities.
On the question of PSU banks; exposure to Adani group companies, the Minister of State (MoS) said: “As per the Reserve Bank of India (RBI), banks are free to take credit-related decisions based on internal assessment of the commercial viability of the loan within their board-approved policies and within RBI’s prudential guidelines. Further, RBI has informed that under the provisions of section 45E of the Reserve Bank of India Act, 1934, the central bank is prohibited from disclosing credit information.”
Sitharaman says LIC’s debt exposure to Adani firms at I6,182.64 cr till Mar 5
New Delhi: Finance Minister Niramala Sitharaman, in her written reply to Lok Sabha, said Life Insurance Corporation of India’s debt exposure to Adani Group of companies was `6,347.32 crore and `6,182.64 crore as of December 31,2022 and March 5,2023, respectively. According to the reply, LIC has a debt exposure of `5,388.6 crore in Adani Ports and SEZ as of March 5. The exposure in Adani Power (Mundra) stood at `266 crore, Adani Power Maharashtra - Phase I (`81.60 crore), among other firms. ENS