Just days after the Hindenburg issue blew out, India’s market regulator, the Securities and Exchange Board of India (SEBI) will now reportedly update the Finance Ministry on the Adani Group. As per updates, the Finance Ministry is expected to get an update from SEBI this week itself.
According to a Reuters report, SEBI will update the Finance Ministry on its investigation into the Adani Group’s follow-on public offer (FPO). It must be noted that the Adani FPO worth Rs 20,000 crore was withdrawn following the Hindenburg issue.
The report also adds that SEBI’s board is expected to meet Finance Minister Nirmala Sitharaman on February 15, 2023. Through this meeting, the Finance Minister is expected to be briefed on the surveillance measures taken up by the market regulator with regards to the havoc in Adani Group stocks, following the Hindenburg rout.
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Before this update, several media reports suggested that SEBI is conducting full-scale examination of the Adani Group’s stocks – their rise and fall, trade patterns, alleged irregularities in the aborted share sale and so on. However, since there was no official update from SEBI, the report now adds that an update on offshore fund flows into Adani Group entities is also expected.
As a ripple effect of the scathing Hindenburg Research report, the Adani Group stocks have reportedly come under scanner of many financial entities. While the latest media update is with regards to SEBI, before this, even the National Stock Exchange (NSE) listed some Adani Group stocks under the ASM framework, most likely due to excess volatility. However, some were also removed later.
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