Adani’s FPO pullout has not impacted India’s image: FM

FM Nirmala Sitaraman was in Mumbai on Saturday. Pic/Ashish Raje

India's economic image is not affected due to Adani Group's recent decision to pull out Rs 20,000 crore follow-on public offers [FPO] amid allegations of financial wrongdoings, Finance Minister Nirmala Sitharaman said on Saturday. The finance minister said there has been an accretion of $ 8 billion to the forex reserves in the last two days alone.

"...our macroeconomic fundamentals or our economy's image, none has been affected. Yes, FPOs come in, and FIIs [foreign institutional investors] get out," Sitharaman told reporters, adding that there are "fluctuations" in every market but the accretion over the last few days establishes the fact that the perception of both India and its inherent strengths is intact.

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Answering a broader question on the allegations against Adani Group, she said the country's independent financial sector regulators will be looking into the aspect and added that capital markets watchdog Securities and Exchange Board of India (SEBI) has the wherewithal to ensure stability in markets.

The finance minister also said that the RBI has already spoken out on the issue, referring to their statement saying that the banking sector is resilient and stable. About 10 days ago, US-based short seller Hindenberg Research made a slew of allegations against Adani Group. The Ahmedabad-based group has denied all the allegations and termed it as a calculated attack on India.

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