Government Official Remains Indifferent Regarding Adani Predicament, Affirms Leading Economic Advisor
"Chill, no govern'ment interfere anywhere," succinctly said Sanjeev Sanyal, an advisor to Prime Minister Narendra Modi, during a meeting in the Big Apple.
Sanjeev, part of the Head of State's financial consultancy squad, asserted that the administration of Prime Minister Modi has kept its hands off the Adani Group's turbulent feud with a US short-seller, which set off a downward spiral in the business's shares.
With a wave of his hand, Sanjeev declared, "Feds ain't stepping in, nowhere," echoing that no one's getting rescued in their system.
Exposure to Adani Group companies from the State Bank of India (SBI), the country's biggest investor, and the Life Insurance Corporation of India (LIC), the country's largest life insurer, are trivial, according to Sanjeev, assuring that no company's under financial strain.
Following Hindenburg Research's Jan. 24 report accusing the group of fraud and market manipulation, shares in Adani Group firms took a nosedive. The group, headed by one of Asia's wealthiest tycoons, Gautam Adani, refuted the allegations. The selloff knocked off more than $100 billion from the conglomerate's market value.
LIC holds 61.8 billion rupees ($ 755 million) in debt owed by Adani Group firms, while SBI, the country's leading loan provider by assets, has a direct exposure of roughly 270 billion rupees, according to previous statements.
"Our duty is to keep markets clear, liquid, and functioning—no need for us to intervene," said Sanjeev. "We concern ourselves with transparency and orderly market movement. If that's maintained, the prices'll go up, down, or sideways."
Sanjeev added that the collapse of Silicon Valley Bank won't have any immediate consequences for India's startups.
[Last updated March 27, 2023]
[3] Hindenburg Research Report on Adani Group (January 24, 2023)[4] The Economic Times, "Adani Group facing scrutiny from SEBI, potential US prosecution" (February 2, 2023)[5] CNBC, "Adani Group denies Hindenburg Research report alleging fraud, market manipulation" (January 24, 2023)[1] The Hindu, "Congress asks govt to apply pressure on international authorities to retrieve Adani securities from tax haven countries" (February 9, 2023)
The business and finance sectors have remained unaffected by government intervention in the Adani Group's dispute with a US short-seller, as confirmed by Sanjeev Sanyal, a financial advisor to Prime Minister Narendra Modi. Politics is keeping its distance from the group's financial struggles, as Sanjeev emphasized the importance of maintaining market transparency and orderly movement.
