Adani-Hindenburg Saga: SEBI undertaking investigation into market allegations against Adani Group, says MoS Pankaj Chaudhury

Adani-Hindenburg Saga: Securities and Exchange Board of India (SEBI), the statutory regulator of securities markets will take possible measures to investigate the market allegations against the Adani Group, Minister of State in Finance Ministry, Pankaj Chaudhury said during the Parliamentary session today.  

“As per its mandate, it conducts investigations into any alleged violations of its Regulations by any market entity. It is, accordingly, undertaking investigation into the market allegations against the Adani Group of companies,” added Chaudhury during his address in the Lok Sabha today.  

Hindenburg Research in its report has alleged that the group’s short positions were in dollar bonds in overseas markets and non-Indian traded derivatives. The nine listed companies forming part of Adani Group witnessed a decline of around 60 per cent of market capitalization from January 24, 2023, till March 01, 2023 subsequent to the report published by Hindenburg. 

Chaudhury also added that, “As per Reserve Bank of India (RBI), banks are free to take credit related decisions based on internal assessment of the commercial viability of the loan within their Board-approved policies and within RBI’s prudential guidelines.”  

In a recent statement, Adani group said it has repaid USD 2.15 billion of loans that were taken by pledging shares in the conglomerate's listed firms and also another USD 500 million in loans taken for the acquisition of Ambuja Cement. 

Adani Group on Sunday said on March 12 that it has repaid loans aggregating USD 2.65 billion to complete a prepayment programme ahead of the March 31 deadline to cut overall leverage in an attempt to win back investor trust post a damning report of a US short seller. 

“The volatility in the stocks of these companies have not had any significant impact at the systemic level. Nifty 50 declined by around 4.5 per cent during the same period,” added Chaudhury. 

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