Does SEBI Need Any Help From Probing Agencies To Investigate The Adani Rout?
Raghuram Rajan, the former Governor of the Reserve Bank of India has raised concern on the market regulator Securities and Exchange Boards of India (SEBI) that the regulatory authority has not thoroughly investigated the allegations made by the Hindenburg charges into the operations by the Adani Group.
Recently, the Supreme Court of India has asked SEBI to look into the matter if there was a regulatory failure in dealing with the accused contravention of laws in the securities market about the Adani Group or other companies.
Raghuram Rajan, the former Governor of the Reserve Bank of India, has raised concern on the market regulator Securities and Exchange Boards of India (SEBI) that the regulatory authority has not thoroughly investigated the allegations made by the Hindenburg charges into the operations by the Adani Group.
He has addressed the concerns and talked about the issues in an interview stating why the SEBI has not reached a conclusion about the ownership of the Mauritius funds that were responsible for holding and trading Adani’s stocks, and he has addressed if SEBI requires help from probing agencies.
When Rajan was questioned about the Adani Group, asking what measures the government should take to improve the outlook of the private family companies to address the tensions about the Hindenburg incident, he mentioned that there are no issues with the outlook of the private family companies.
The main concern is minimizing the link between the government and the businesses, and it will allow the regulatory parties to carry out their jobs.
The Supreme Court has recently formed a committee to look into the allegations made by the Hindenburg group on India’s richest conglomerate. It has even asked the SEBI to look into if the Adani Group has violated Securities Act and has undergone manipulation of stocks.
DY Chandrachud, the Chief Justice of India, has stated that the authority will constitute sic members and will be headed by the former Supreme Court Judge Justice Abhay Manohar Sapre and will include KV Kamath and Nandan Nilekani.
SEBI Must Strengthen the Confidence of the Investors: SCI
He has even asked SEBI to suggest initiatives to strengthen and promote the awareness of the investors. The apex court has asked the regulatory committee to address if there was a regulatory failure in addressing the contravention of laws in the securities market about the Adani Group or other companies.
The Chief Justice of India has mentioned in its order of the existing view that it is appropriate to constitute an Expert Committee to address the regulatory framework and make recommendations to strengthen confidence. The step has been taken to protect the confidence of Indian investors against volatility or other situation that has taken place in the recent past.
SEBI has taken all the details of all the securities and ratings of the Adani Group companies from different credit rating affirms in the recent past.
The SEBI has ordered different agencies to provide information about the Adani Group which involves all the ratings, outlook, and other possible updates about the group about other further discussions.
SEBI has been looking into the relationship between two institutes that have participated in Adani’s FPO. The funds are Mauritis-based – the Great International Tusker Fund and the Ayushmat Ltd.
None of the rating companies has modified the ratings of the Adani Group after the Hindenburg incident resulted in chaos in the market. Only the international credit agencies, including Moody’s and s&P have changed the outlook of some of the companies of Adani. They have downgraded the outlook of some of the enterprises from stable to negative. The decision has been primarily taken due to the decline in the market values of the company concerned with the investors.
Adani stocks have faced massive pressure after January 24. Adani Group has tried different steps to win back the confidence of investors by conducting road shows around the world. The company will initiate meetings with fixed-income investors from March 7 to 15 in different locations, including Dubai, London, and US. It has been reported by valid news sources.
Gautam Adani has taken over his social media platforms to address the situation. He has stated that the Supreme Court will bring the finality in a limited time. He mentioned in his tweet that the Adani Group welcomes the order of the honourable Supreme Court. The truth will persist.
Edited by Prakriti Arora