“Adani Group Shares Under Scrutiny by Sebi Due to Unusual Price Movement”
The Securities and Exchange Board of India (SEBI) has announced that they have observed unusual price movements in the shares of the Adani Group, a conglomerate in the Indian market.
The regulator stated that if any information related to the entity comes to their attention, it will be examined and appropriate action will be taken. This announcement follows a statement issued by the Reserve Bank of India (RBI) on the ongoing crisis faced by the Adani Group.
The National Stock Exchange (NSE) recently placed three Adani stocks, including Adani Enterprises, Adani Ports, and Ambuja Cements, under its additional surveillance measure framework. The RBI had previously assured stakeholders that the banking sector remains stable and resilient despite speculation of potential risks from their exposure to the Adani Group.
The Adani Group crisis was triggered by a research report from US-based short seller Hindenburg, which alleged gaps in the group’s financials, high debt burden, and risk of overvaluation. This led to a fall in the shares of group companies and the cancellation of their proposed Rs 20,000 crore follow-on share sale.
Large Indian banks have both fund and non-fund based exposure to the Adani Group, which has raised concerns among stakeholders. The RBI issued a statement to calm these concerns, saying that the banking sector remains resilient and stable, and that they are monitoring the exposure of the Indian banking sector to the “certain business conglomerate.” The largest lender in India, the State Bank of India, dismissed concerns due to its Rs 27,000 crore exposure to the Adani Group, saying it constitutes less than 0.9% of the loan book.
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