Jairam Ramesh, the Congress general secretary in charge of communications, announced on Wednesday that he had written to Shaktikanta Das, the governor of the Reserve Bank of India (RBI), and Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), requesting an investigation into the accusations made against the Adani Group by Hindenburg Research, a New York-based company.
Jairam Ramesh writes to RBI, SEBI , seeking probe into allegations leveled against Adani Group
Ramesh requested the central bank to investigate two aspects of the issue in his letter.
In his letter, Ramesh urged the central bank to look into two aspects of the issue: “One, what is the true Adani exposure of the Indian banking system? Two, what are the explicit and implicit guarantees that the Adani Group has been given that it will be bailed out by Indian banks if foreign funding dries up?”
In a letter to the RBI, Ramesh stated, “must ensure that risks to financial stability are investigated and contained”.
Ramesh, on the other hand, urged a “fair and complete, with no favour”.probe in a letter to the SEBI director.
Contents of the letter,
“Any failure to do so will cast a shadow on Indian corporate governance and on India’s financial regulators, and could affect our ability to raise funds globally,”
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Ramesh questions why LIC and SBI have heavily bought Adani Group Equity
“LIC, which 30 crore Indians trust with their life savings, has lost thousands of crores in Adani Group stock in recent days. Should we not ensure that such public sector financial institutions are more conservative in their investments than their private sector counterparts and free from pressure from above?”.
Share values of companies in the Adani Group have fallen dramatically since the Hindenburg investigation accused stock manipulation and fraud by the conglomerate. All accusations have been refuted by the Adani Group, which also called Hindenburg “an unethical short seller” and claimed that its report was “false.”
Congress-led opposition MPs repeatedly interrupted both Houses of Parliament during the budget session, which ended earlier this week, to demand that either a Joint Parliamentary Committee (JPC) or an investigation under the supervision of the Supreme Court look into the Adani Group situation.
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