The Securities and Exchange Board of India on Saturday said it is committed to ensuring market integrity and structural strength, referring to the controversy surrounding the Hindenburg report on Adani Group.
After the fallout of the report, the Adani Group’s shares have been on a free fall as the seven listed firms have lost more than $100 billion.
“In all specific cases, Sebi examines all matters that come to its notice and takes appropriate action”, PTI quoted the market regulator.
“For orderly and efficient functioning of market, all surveillance measures in place to address excessive volatility in specific stocks”, it added.
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Referring to Adani Group, SEBI said, “During past week, unusual price movement observed in stocks of a business conglomerate”. The market regulator added that it is committed to ensuring that stock market functions in an uninterrupted, transparent, efficient manner as has been case so far.
Earlier in the day, Union finance minister Nirmala Sitharaman said in the last two days the foreign exchange reserve had gone up by eight billion. Responding to Adani’s FPO pull out, she said that the FPOs come and get out and such fluctuations happen in every market. She added that the foreign reserves going up by eight billion proved that the perception about India and its inherent strength is intact.
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On February 2, the Adani Enterprises had announced it decided not to proceed with its FPO, this after the shares of the firm sank 28.45 per cent to close at ₹2,128.70. The company also said it needed to protect its investors by returning their proceeds.
On Friday, the Reserve Bank of India had said the country’s banking sector is resilient and stable and that the central bank maintains constant vigil on the lenders. The RBI said it is constantly monitoring the banking sector.