SEBI investigating market allegations against Adani group companies: MoS Finance

Regulator SEBI is investigating market allegations against Adani group whose 9 listed companies saw a 60 per cent decline in their market capitalisation between January 24 and March 1 Parliament was informed on MondayMinister of State for Finance Pankaj Chaudhary said in the Lok Sabha that the volatility in the stocks of these companies have not had any significant impact at the systemic level Nifty 50 declined by around 45 per cent during the same periodThe Securities and Exchange Board of India Sebi as the statutory regulator of securities markets is mandated to put in place regulatory frameworks for effecting stable operations and development of the securities markets including protection of investorsAs per its mandate it conducts investigations into any alleged violations of its regulations by any market entity he said It is accordingly undertaking investigation into the market allegations against the Adani Group of companies The nine listed companies forming part of Adani Group witnessed a decline of around 60 per cent of market capitalisation from January 24 2023 till March 1 2023 subsequent to the report published by Hindenburg Research Chaudhary saidUSbased short seller Hindenburg had in January made a litany of allegations including fraudulent transactions and shareprice manipulation against Adani group following which shares of group companies had taken a beatingThe group has dismissed the charges as lies saying it complies with all laws and disclosure requirementsChaudhary said as per the Reserve Bank of India banks are free to take credit related decisions based on internal assessment of the commercial viability of the loan within their boardapproved policies and within RBIs 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 he saidAlso read SEBI orders attachment of bank demat accounts of Sahara firm Subrata RoyIn a separate reply Chaudhary said these listed Adani group companies are not part of Sensex and have a combined weight of below 1 per cent in NiftyThe volatility in the stocks of these companies have not had any significant impact at the systemic level Nifty 50 declined by around 29 per cent in the month of January 2023 and by around 49 per cent in the 2month period of January and February 2023 the minister saidHe said the pricing of individual stocks and variations over or undervaluation and the price risks borne by investors are determined by the dynamics of demand and supplyThe regulatory framework provides for surveillance mechanisms which are triggered in instances of volatility in share prices of specific companies Chaudhary saidIn its order dated March 2 2023 the Supreme Court has directed Sebi to conclude the ongoing investigations within two monthsChaudhary said the investigations pertaining to imports of power generation power transmission and infrastructure port amp 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 authoritiesAs regards case pertaining to imports of Indonesian coal by Adani Group of companies investigations by DRI have not reached finality as information sought from exporting countries through execution of Letters Rogatory LRs is under litigationThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever