The Adani Group has lost over $100 billion in market capitalisation in the last few days, ever since the Hindenberg report released on January 25th, alleging that the group had engaged in “brazen stock manipulation and accounting fraud over the course of decades."
On February 3rd, both houses of the parliament were adjourned without transacting any business. The opposition parties demanded a discussion on the risk to Indian investors and an investigation by a parliamentary panel or a Supreme Court-appointed committee.
Finance Secretary TV Somanathan, in an exclusive interview with Moneycontrol, said: “Individual companies running into market disturbances is a common occurrence across the world. It’s a private-sector company. It does not affect how India is perceived as an investment destination.”
On the exposure of Indian banks and financial institutions to the Adani group, the Finance Secretary said: “According to the information I have, the exposure is fairly small in terms of the aggregate holdings of our public financial institutions. I am certain that there is no impact on deposit or policyholders.”