The market regulator is probing Adani Group’s now withdrawn share sale and market rout following accusation of fraud, stock manipulation
CPI activists hold placards as they shout slogans against the central government, during a protest, calling for an enquiry into allegations of major accounting fraud at Adani, in Mumbai on Monday. Pic/AFP
Market regulator SEBI is set to brief the federal government on its investigation into Adani Group’s shelved share sale, two sources said, thrusting the watchdog into the limelight in a week when its laws also face scrutiny by the top court.
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The Securities and Exchange Board of India (SEBI) has been probing the group’s market rout, including examining trade patterns and any potential irregularities in the $2.5 billion share sale of Adani Enterprises that Adani Group was forced to cancel due to the stock’s plunge.
The SEBI board will update finance ministry officials on its investigation on February 15, the sources said, on condition of anonymity, as they are not allowed to speak to the media.
Matter in SC
The Centre told the Supreme Court on Monday that it has no objection to a proposal for setting up a panel of domain experts to look into strengthening the regulatory mechanisms for the stock market.
The government, however, told a bench headed by Chief Justice D Y Chandrachud that it wanted to give the names of the domain experts for the committee and the scope of its mandate in a sealed cover in larger interest.
The SC has now listed two PILs, alleging exploitation of innocent investors and “artificial crashing” of the Adani Group’s stock value, for hearing on Friday.
Also Read: ‘Draped in national flag, Adani Group looted India’
Adani tries to calm investors
Adani Group sought to reassure investors on Monday as a rout in its shares continued, saying its business plans were fully funded, its cash flows strong and it remained confident of delivering attractive returns to shareholders.
Bloomberg News reported on Monday the group had halved its revenue growth target and planned to scale down capital spending. A company spokesperson told Reuters earlier in the day the report was “baseless, speculative”, without elaborating.
Led by billionaire businessman Gautam Adani, the group’s seven listed stocks have lost about $120 billion in market value since a January 24 report by US short-seller Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation, allegations the company has denied.
53 per cent
Loss in group’s market cap since Jan 24
Retail inflation rises to 6.52 per cent
Retail inflation breached the RBI’s comfort zone and rose to a three-month high of 6.52 per cent in January, mainly on account of a spike in food prices, as per government data released on Monday.
The inflation rate based on the Consumer Price Index (CPI) stood at 5.72 per cent December and 6.01 per cent in January 2022.
Inflation rate for the food basket was at 5.94 per cent in January, up from 4.19 per cent in December.
The previous high was 6.77 per cent in October.
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