On the Adani-Hindenburg dispute, the government said, there is no impact on the system
[ad_1]
New Delhi : Adani Group and Hindenburg Research have given their reply in the Lok Sabha in the second phase of the budget session of the Parliament on Monday. According to media reports, the Union Finance Ministry on Monday gave its reply in the Lok Sabha to the report alleging accounting fraud and stock manipulation by American short seller Hindenburg Research on Adani Group companies. The government said the Hindenburg Research report did not have ‘any significant impact at the systemic level’. However, in a span of two months, the market cap of the group definitely fell by 60 per cent. The Finance Ministry also informed Parliament that the government has not constituted any committee to look into the allegations leveled against Adani Group companies.
SEBI has already started investigation
In the Lok Sabha, questions were asked on behalf of Congress MPs TN Prathapan, Manish Tiwari and Jothimani Sennimalai on the ongoing dispute between Adani Group and Hindenburg Research. On behalf of these MPs, latest information was sought on the investigation of alleged rigging of shares of Adani Group companies. Responding to Congress MPs’ question, Union Minister of State for Finance Pankaj Chowdhary said that the Securities and Exchange Board of India (SEBI) has already started the investigation and will conclude it within two months as per the Supreme Court’s order on March 2. .
DRI submitted the report
Union Minister of State for Finance Pankaj Chowdhary further said that the Directorate of Revenue Intelligence (DRI) had already submitted its report before the judicial authorities, while the Adani Group companies were involved in power generation, power transmission, and infrastructure (ports and SEZs). Investigation related to import of equipment has been done. The Directorate of Revenue Intelligence (DRI) has concluded and submitted the report before the concerned judicial authorities. The DRI investigation in respect of the matter relating to import of Indonesian coal by Adani Group of Companies is yet to conclude as the information sought from the exporting countries through execution of Letters Rogatory is under litigation.
Adani Group’s market cap declined by 60 percent
Highlighting the impact of the Hindenburg Research report on Adani Group, the Minister of State for Finance has said in his written reply that the market capitalization of the nine listed companies of Adani Group registered a decline of about 60 per cent from January 24 to March 1, 2023. Went. He said that these companies are not part of the Sensex, the flagship sensitive index of the Bombay Stock Exchange (BSE) and have less than 1 per cent participation in the Nifty. The ups and downs in the shares of these companies have not had any significant impact at the systemic level. Nifty 50 declined by about 2.9 per cent in the month of January 2023. With this, the 2 month gap of January and February 2023 saw a decline of about 4.9 per cent.
LIC invested Rs 35,000 crore
Responding to another question by Congress MP Anto Antony, Chowdhury referred to a January 30 press release of the Life Insurance Corporation of India (LIC), which stated that LIC’s equity and debt in Adani Group The total stake is around Rs 35,000 crore. Congress MP Antony asked the Finance Ministry to show the data about the investments made by public sector institutions in the Adani Group.
Adani Group’s Rs 347.64 crore at risk
Union Minister Pankaj Chowdhary further said that according to the data received from New India Assurance Company Limited, United India Insurance Company Limited, National Insurance Company Limited, Oriental Insurance Company Limited and General Insurance Corporation of India among public sector general insurance companies Adani Group The total exposure in OF companies is around Rs 347.64 crore as on January 31, 2023, which is 0.14 per cent of the total AUM of all the five companies.
[ad_2]
Source link
