Powered by

India's macro fundamentals, economic image unaffected by Adani FPO withdrawal: Sitharaman

Reiterates that Indian markets are well regulated

PTI10_06_2022_000159B Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman, on Saturday, said India's macro fundamentals and economic image are not affected by the Adani Group's withdrawal of its Rs 20,000 crore FPO.

In the last two days alone, $8 billion in forex came in, the finance minister said during a post-budget press conference in Mumbai."...our macroeconomic fundamentals or our economy's image, none of which has been affected. Yes, FPOs (follow-on public offers) come in, and FIIs get out," Sitharaman said.

Playing down the issue of Adani Group withdrawing its Rs 20,000-crore FPO amid a steep fall in stock prices in the wake of the US-based short-seller Hindenburg Research's allegations against it, the finance minister said, "How many times have FPOs withdrawn from this country and how many times has the image of India suffered because of that? And how many times have the FPOs not come back?"

"FPOs come and get out. These fluctuations happen in every market. But the fact that we had 8 billion come in last few days proves that the perception about India and its inherent strength is intact," she said.

Reiterating her earlier statement that the markets in India are well regulated, the finance minister said banks and LIC have come out speaking about their exposure to Adani group and the RBI too made a statement on the issue. 

Amid the controversy triggered by a slew of allegations against the group, the finance minister said the regulators will do their job on the issue. “Regulators are independent of the government, and they are left to themselves to do what is appropriate for keeping the markets regulated in prime condition. The SEBI (Securities and Exchange Board of India) has the wherewithal to keep that prime condition intact," she said.

Hindenburg had released the report on January 24— the day on which Adani Enterprises' Rs 20,000-crore follow-on share sale opened for anchor investors.

📣 The Week is now on Telegram. Click here to join our channel (@TheWeekmagazine) and stay updated with the latest headlines