Don't think so: FM Sitharaman on whether India's position in global finance market affected by Adani row

New Delhi, Feb 04: Finance Minister Nirmala Sitharaman on Saturday said that the Adani row has not affected India's image in the global finance market.

"Foreign Exchange Reserve in last 2 days has gone up by 8 Billion(dollars). Our macroeconomic fundamentals or economy's image haven't been affected," she said at a press conference. On asking about the Adani row, she said, "It'll be regulators who'll do their job. RBI made statement, prior to that banks, LIC came out & told about their exposure (to Adani group). Regulators independent of govt, they're left to themselves to do what is appropriate so market is well regulated."

Talking about Adani Enterprises' decision to call off share sale, she said, "How many times have the FPO not withdrawn from this country and how many times has the image of India been suffering because of that and how many times the FPOs have not come back?" The minister then added, "FPOs come and get out. These fluctuations are there in every market. But the fact that we have had 8 Billion come in these last few days proves that the perception about India and its inherent strength is intact."

Adani Enterprises on Wednesday called off its Rs 20,000 crore share sale due to prevailing market conditions, the company said in a statement. It comes days after the company's stocks took a beating following criticism by American short seller Hindenburg Research.

#WATCH |"...FPOs come&get out. Fluctuations are in every market. Fact that we've had 8 Billion come(Foreign Exchange Reserve)in last few days proves that perception about India&its strength is intact," FM on India's position in global financial market in wake of(Adani)FPO pullout pic.twitter.com/MaEFE6DBX7

— ANI (@ANI) February 4, 2023

"The Board of Directors of the Company at its meeting held today i.e. February 1, 2023 has decided, in the interest of its subscribers, not to proceed with the further public offer (FPO) of equity shares aggregating up to Rs 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed," the company said in an exchange filing.

Adani Group stocks have taken a beating on the bourses after Hindenburg in the report made a litany of allegations, including fraudulent transactions and share price manipulation, at the Gautam Adani-led group, the report added.