Congress’s Jairam Ramesh urges RBI, SEBI to probe allegations towards Adani Group 

By PTI

NEW DELHI: Senior Congress chief Jairam Ramesh has written to the Reserve Bank of India (RBI) Governor Shaktikanta Das and Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and sought an investigation into allegations of monetary irregularities and inventory manipulation towards the Adani Group.

In his letter to Das posted on Twitter on Wednesday, Ramesh urged the RBI to make sure that “excessive debt exposure” by the Adani Group, at the moment and sooner or later, doesn’t destabilise India’s banking system.

“The Adani Group has been described as ‘deeply over-leveraged’ – if the Adani Group has artificially inflated the value of its stock through manipulation by offshore shell companies and raised funds by pledging those overvalued shares, the recent sell-off in stock prices is creating vulnerabilities for the Adani Group to find financing, and by implication for India’s banking system,” the Congress MP stated in his letter dated February 14.

Ramesh known as on the RBI to look into two aspects- what’s the true Adani Group publicity of the Indian banking system and what are the specific and implicit ensures that the Adani Group has been on condition that it will likely be bailed out by Indian banks if international funding dries up.

“Will the RBI ensure that Indian banks are not forced to step in to substitute for any shortfall in foreign financing, especially given the Adani Group’s political connections,” Ramesh requested.

Public sector monetary establishments just like the Life Insurance Corporation of India and the State Bank of India have been “unusually generous” to the Adani Group in recent times, the Congress chief alleged.

The RBI should be certain that dangers to monetary stability are investigated and contained, he stated in his letter.

The dangers of contagion from any collapse within the Adani Group’s means to safe financing have to be monitored always, Ramesh argued.

“As the steward of the financial system, the RBI must do everything possible to protect India’s banks and financial institutions, and we urge you to act in the national interest to ensure that India’s taxpayers do not pay the price for the ‘misgovernance’ and potential ‘illegalities’ of one influential business house,” he wrote to Das.

Ramesh additionally posted his letter to SEBI chief Buch on Twitter saying, many Indian residents had been disturbed by the allegations that the Adani Group has indulged in “brazen stock manipulation” and “accounting fraud” by way of a “vast labyrinth of offshore shell entities”.

“Apart from the potential violation of several Indian laws, this goes against everything that the Securities and Exchange Board of India (SBI) stands for. We urge you to investigate all potential violations and to ensure complete transparency about who is investing in Adani Group companies,” Ramesh stated.

“Given the Adani Group’s size and political connections, it is incumbent that such investigations are seen as fair and complete, with no favour shown to the influential business group,” the Congress basic secretary harassed.

Any failure to take action will forged a shadow on Indian company governance and on India’s monetary regulators, and will have an effect on our means to boost funds globally, he argued.

In his letter, Ramesh requested why monetary establishments of nationwide significance such because the Life Insurance Corporation of India (IIC) and the State Bank of India (SBI) have “heavily bought” Adani Group fairness when most personal funds have been severely underweight due to issues over company governance and indebtedness.

“LIC, which 30 crore Indians trust with their life savings, has lost thousands of crores in Adani Group stock in recent days. Should we not ensure that such public sector financial institutions are more conservative in their investments than their private sector counterparts and free from pressure from above?” Ramesh stated.

The inclusion of Adani Enterprises within the extensively used National Stock Exchange Nifty 50 index in September 2022 occurred regardless of the agency’s weak fundamentals, an extreme price-to-earnings ratio and a tiny free float, he alleged.

He additional claimed that including Adani Enterprises compelled supposedly conservative Nifty index funds to make vital purchases of this dangerous inventory, together with the Employees Provident Fund Organisation, India’s largest pension fund.

“In recent days, global stock indices have suspended Adani Group companies while the matter is investigated, but the NSE has failed to take any similar action to protect investors,” Ramesh stated.

Is it not SEBI’s duty to make sure that index buyers are protected against investing in questionable companies, he requested.

“We urge SEBI to play its role as the steward of India’s financial markets on behalf of the crores of Indians who have faith in the fairness of India’s financial markets,” the Congress chief stated.

Ramesh shared the letters on Twitter and stated that he has expressed the hope {that a} “full-fledged independent investigation will be carried on the numerous allegations against the ‘PM-blessed’ Adani Group”.

The Congress has been demanding a Joint Parliamentary Committee probe into the allegations towards the Adani Group by US-based short-seller Hindenburg Research.

The Adani Group has dismissed the allegations as baseless.

NEW DELHI: Senior Congress chief Jairam Ramesh has written to the Reserve Bank of India (RBI) Governor Shaktikanta Das and Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and sought an investigation into allegations of monetary irregularities and inventory manipulation towards the Adani Group.

In his letter to Das posted on Twitter on Wednesday, Ramesh urged the RBI to make sure that “excessive debt exposure” by the Adani Group, at the moment and sooner or later, doesn’t destabilise India’s banking system.

“The Adani Group has been described as ‘deeply over-leveraged’ – if the Adani Group has artificially inflated the value of its stock through manipulation by offshore shell companies and raised funds by pledging those overvalued shares, the recent sell-off in stock prices is creating vulnerabilities for the Adani Group to find financing, and by implication for India’s banking system,” the Congress MP stated in his letter dated February 14.

Ramesh known as on the RBI to look into two aspects- what’s the true Adani Group publicity of the Indian banking system and what are the specific and implicit ensures that the Adani Group has been on condition that it will likely be bailed out by Indian banks if international funding dries up.

“Will the RBI ensure that Indian banks are not forced to step in to substitute for any shortfall in foreign financing, especially given the Adani Group’s political connections,” Ramesh requested.

Public sector monetary establishments just like the Life Insurance Corporation of India and the State Bank of India have been “unusually generous” to the Adani Group in recent times, the Congress chief alleged.

The RBI should be certain that dangers to monetary stability are investigated and contained, he stated in his letter.

The dangers of contagion from any collapse within the Adani Group’s means to safe financing have to be monitored always, Ramesh argued.

“As the steward of the financial system, the RBI must do everything possible to protect India’s banks and financial institutions, and we urge you to act in the national interest to ensure that India’s taxpayers do not pay the price for the ‘misgovernance’ and potential ‘illegalities’ of one influential business house,” he wrote to Das.

Ramesh additionally posted his letter to SEBI chief Buch on Twitter saying, many Indian residents had been disturbed by the allegations that the Adani Group has indulged in “brazen stock manipulation” and “accounting fraud” by way of a “vast labyrinth of offshore shell entities”.

“Apart from the potential violation of several Indian laws, this goes against everything that the Securities and Exchange Board of India (SBI) stands for. We urge you to investigate all potential violations and to ensure complete transparency about who is investing in Adani Group companies,” Ramesh stated.

“Given the Adani Group’s size and political connections, it is incumbent that such investigations are seen as fair and complete, with no favour shown to the influential business group,” the Congress basic secretary harassed.

Any failure to take action will forged a shadow on Indian company governance and on India’s monetary regulators, and will have an effect on our means to boost funds globally, he argued.

In his letter, Ramesh requested why monetary establishments of nationwide significance such because the Life Insurance Corporation of India (IIC) and the State Bank of India (SBI) have “heavily bought” Adani Group fairness when most personal funds have been severely underweight due to issues over company governance and indebtedness.

“LIC, which 30 crore Indians trust with their life savings, has lost thousands of crores in Adani Group stock in recent days. Should we not ensure that such public sector financial institutions are more conservative in their investments than their private sector counterparts and free from pressure from above?” Ramesh stated.

The inclusion of Adani Enterprises within the extensively used National Stock Exchange Nifty 50 index in September 2022 occurred regardless of the agency’s weak fundamentals, an extreme price-to-earnings ratio and a tiny free float, he alleged.

He additional claimed that including Adani Enterprises compelled supposedly conservative Nifty index funds to make vital purchases of this dangerous inventory, together with the Employees Provident Fund Organisation, India’s largest pension fund.

“In recent days, global stock indices have suspended Adani Group companies while the matter is investigated, but the NSE has failed to take any similar action to protect investors,” Ramesh stated.

Is it not SEBI’s duty to make sure that index buyers are protected against investing in questionable companies, he requested.

“We urge SEBI to play its role as the steward of India’s financial markets on behalf of the crores of Indians who have faith in the fairness of India’s financial markets,” the Congress chief stated.

Ramesh shared the letters on Twitter and stated that he has expressed the hope {that a} “full-fledged independent investigation will be carried on the numerous allegations against the ‘PM-blessed’ Adani Group”.

The Congress has been demanding a Joint Parliamentary Committee probe into the allegations towards the Adani Group by US-based short-seller Hindenburg Research.

The Adani Group has dismissed the allegations as baseless.