The Adani stock crash last week led to “unusual price movement in equities of a business conglomerate,” according to Securities and Exchange Board of India (SEBI), the capital markets regulator.
SEBI observes “unusual price movement in stocks of a business conglomerate”
SEBI said in statement,
“During the past week, unusual price movement in the stocks of a business conglomerate has been observed. As part of its mandate, SEBI seeks to maintain orderly and efficient functioning of the market and has put in place a set of well-defined, publicly available surveillance measures (including the ASM framework) to address excessive volatility in specific stocks,”
The regulator stated,
“This mechanism gets automatically triggered under certain conditions of price volatility in any stock,”
Also Read: Amul Increases Milk Prices by Rs 3 Per Litre
RBI say’s country’s banking system resilient
The Reserve Bank of India (RBI), which expressed worries over lenders’ exposure to Adani group enterprises, had earlier stated that the country’s banking system is strong and stable. SEBI released its comment the next day.
Following charges of high debt levels and usage of tax havens made by US short-seller Hindenburg Research, shares of Adani group companies have lost more than half of their market value, or more than $100 billion collectively.
One of the richest man in the world and head of the ports-to-energy business, Gautam Adani, rejected the criticism and denied wrongdoing. Adani Group said in a 413-page response that the Hindenburg report was motivated by “an ulterior goal” to “create a phoney market” in order for the US company to profit financially.
A day after it was fully subscribed, Adani Enterprises Ltd. cancelled its follow-on share offer for 20,000 crore. In light of the current market turbulence, Adani claimed that the company’s board thought that “moving on with the matter will not be morally correct.”
Also Read: Ranveer Singh is the brand ambassador of Nutella in India
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
