FM Sitharaman on Adani issue: 'Regulators monitoring the situation'

Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on February 4 said regulators are monitoring the developments on the Adani group and they are independent to function.

Banks and Life Insurance Corporation came out with their exposure to the Adani group. The Reserve Bank of India (RBI) released its statement on the same, the finance minister said.

"The market has functioned in prime condition. SEBI (the Securities and Exchange Board of India) has worked on it well," Sitharaman said at a post-budget press conference in Mumbai.

The Adani group faced a crisis after a research report from US short seller Hindenburg alleged lapses in its accounting and valuation. After the report by the short seller, the shares of Adani group firms have plummeted.

On February 2, sources told Moneycontrol that the RBI is looking into the details of banks' exposure to Adani group companies and has sought the present status of these loans.

The RBI has already reached out to some of the major banks which are the lenders to the group and is engaging with lenders to verify the exposure details, people aware of the matter told Moneycontrol said.

Also read: RBI looking at banks' exposure to Adani group companies, seeks present status: Sources

And on February 3, Adani Enterprises will be removed from the Dow Jones Sustainability Indices, according to an announcement made in the US market.

S&P Dow Jones Indices in a note said Adani Enterprises would be removed from the indices with effect from February 7, following a media and stakeholder analysis triggered by allegations of stock manipulation and accounting fraud.

Adani Enterprises' Rs 20,000 crore follow on public off (FPO) was called off following the report, despite achieving full subscription.

In a message, Adani Group Chairperson Gautam Adani said pushing ahead with the issue would have been not "morally correct" after a massive erosion in stock price.