No impact of Adani FPO cancellation on economy: Union finance minister Nirmala Sitharaman


NEW DELHI: Union finance minister Nirmala Sitharaman said here on Saturday that the cancellation of Adani Enterprises’ follow-on public offer (FPO) will not have any impact on the economy and no effect on the image of the economy.
Responding to queries on the crash of Adani Group shares, the finance minister said, “Regulators will do their job, and they are independent of the government. It is up to them to do what is appropriate. To keep the market regulated and in prime condition is the role of Sebi, and it has done that.”

Sitharaman said RBI had already issued its statement on the Adani issue, and public sector banks and LIC had issued statements on their exposure to the group.


Adani Group firms lose over $100 billion: Things to know

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Shares of Adani Group companies have been in free fall ever since Hindenburg published its report alleging the group of stock manipulation and more.

A rout in the share price of Adani group companies had culminated in the group’s flagship company Adani Enterprises’ FPO being cancelled. On Friday, the FM said in an interview to a news channel that no matter how much the issue is discussed globally, it is not an indication of how well the financial markets are governed.

Addressing media on Saturday, Sitharaman said the FPO cancellation would have no impact on the economy’s fundamentals. “How did our foreign exchange reserves grow by $8 billion? Our macroeconomic fundamentals or our economy’s image has not been affected,” she said.

Sitharaman said that every market witnesses fluctuations, cancellation of FPOs and exits of foreign institutional investors. “How many times have FPOs been withdrawn and how many times has the image of the country suffered,” she asked.

Hindenburg vs Adani: 'Regulators will do what needs to be done' says, Nirmala Sitharaman

Hindenburg vs Adani: ‘Regulators will do what needs to be done’ says, Nirmala Sitharaman


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