'India's macro fundamentals not affected': FM Nirmala Sitharaman on Adani row
On January 24, US short seller Hindenburg Research had published a report on Adani Group accusing it of improper use of offshore tax havens and flagging concerns about high debt that sent the Group stocks to crash.
FollowUnion Finance and Corporate Affairs Minister Nirmala Sitharaman on Saturday (February 4) said India's macro fundamentals and economic image are not affected by the Adani Group's withdrawal of its Rs 20,000 crore FPO.
Addressing a post-Budget press conference, FM Sitharaman said, "In the last two days alone, USD 8 billion in forex came in, our macroeconomic fundamentals or our economy's image, none of which has been affected. Yes, FPOs (follow-on public offers) come in, and FIIs get out."
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She 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.
Meanwhile, it can be seen that Gautam Adani has been moved from the top 20 richest people's list after the share price fell on February 3.
On February 3, the total market cap of Adani Group slipped 47.44% to reach Rs 10,07,999 crore from Rs 19,18,056 crore on January 24, the day the Hindenburg report was released.
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On Friday, FM Sitharmana said, "Our regulators are normally very-very stringent about governance practices and therefore, one instance, however much talked about globally it may be, is not going to be indicative of how well financial markets are governed."
Speaking to reporters, two senior government officials said that India's ministry of corporate affairs has started a preliminary review of Adani Group's financial statements and other regulatory submissions made over the years.
On January 24, US short seller Hindenburg Research had published a report on Adani Group accusing it of improper use of offshore tax havens and flagging concerns about high debt that sent the Group stocks to crash.
