Adani Group

RBI and SEBI should investigate the allegations against Adani Group: Congress

The Congress on Friday said the Reserve Bank of India and SEBI should investigate the allegations leveled against the Adani Group by American financial research firm Hindenburg Research, as the stability and security of India’s financial system is the responsibility of these institutions.

Party general secretary Jairam Ramesh also claimed that the business group has close ties with Prime Minister Narendra Modi and the group has benefited from it.

In a statement, he said, “Under normal circumstances, a political party should not comment on a research report prepared by a hedge fund on a private company or business group, but the forensics conducted by Hindenburg Research in relation to the Adani Group Congress party has to give its response on the analysis. This is because the Adani Group has had well-known relations with PM Narendra Modi from the time he was the Chief Minister of Gujarat.

Ramesh says, “Additionally, the highest level of risky transactions with the Adani group of financial institutions such as Life Insurance Corporation of India (LIC) and State Bank of India (SBI), which are considered pillars of the financial system, ensure financial stability and millions of Savings of Indians may be affected.

He said, “It is also worth noting here that the Adani Group has also been shown in the report presented earlier as a group that has taken more debt than its capacity.” All these allegations need to be thoroughly investigated by the institutions responsible for the stability and security of the Indian financial system like the Reserve Bank of India, and Bank SEBI.

Ramesh claimed, “While the allegations of financial impropriety are very serious, what is even more unfortunate is that the Modi government has failed to pay attention to the indiscriminate investment made by very important entities like LIC, SBI, and other public sector banks in the Adani group. India’s financial system could be in serious systemic trouble through this.

“These institutions have heavily funded the Adani Group, while private sector financial institutions have refrained from investing in the Adani Group due to concerns over corporate governance and debt.

A whopping 8 percent of LIC Management’s shares, ie Rs 74,000 crore have been invested in Adani Group companies, making it the second largest holding.

According to Ramesh, public sector banks have lent twice as much to the Adani group as private banks, with 40 percent of the loans being given by SBI alone. This irresponsible attitude has put crores of Indians putting their savings in LIC and SBI at serious financial risk.

“The Modi government may try to impose censorship, but in an era of globalization of Indian businesses and financial markets, can report like the Hindenburg that call attention to corporate misgovernance be simply brushed aside and only given the go-ahead,” he asked. Can be dismissed as ‘malicious’?”

American financial research company Hindenburg Research has made several allegations against the Adani Group. The Hindenburg report accused the group, led by industrialist Gautam Adani, of engaging in “blatant stock manipulation and accounting fraud”. Following the allegation, there was a big fall in the shares of Adani Group’s listed companies related to diversified business.

The Adani Group on Thursday said it is exploring legal options for “punitive action” against US financial research firm Hindenburg Research for acting “indiscriminately” in an attempt to sabotage share sales of its flagship company. doing. At the same time, American financial research company Hindenburg Research said that it stands by its report.

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