Indian markets very well regulated: Nirmala Sitharaman on Adani stock crash

Hindenburg Research allegations that Adani Group was "engaged in a brazen stock manipulation and accounting fraud", caused a huge dent on the Adani Group firms' assets.

New Delhi, Feb 03: Finance Minister Nirmala Sitharaman said Friday reacted to the Adani crisis and said India's financial sector is very well regulated and one instance, no matter how much it is talked about globally, is not going to govern the country's market.

In an exclusive interview to News18, Sitharaman said "I want to recall the words...coming from the horse's mouth has more credibility. Both SBI and LIC have issued detailed statements. And I know the chairperson or the CMD... he has himself come out and explained how they are not overexposed or whatever they said. And also said, look, we are sitting over profits for the exposure that we have which is well within the limit. That's what I understood. I read it through the media.

"They have very clearly said their exposure is well within the permitted limit and they are sitting over profit even with the valuation falling," she said.

Allying fears, Sitharaman said "Indian banking sector today is at a very comfortable level and their position is very sound.

"Indian banking sector today is at a very comfortable level and their position is very sound, Sitharaman said adding that she made the statement with a sense of responsibility. NPAs coming down to a low and recovery is happening and the situation gets reflected when they go to raise money in the market," she said.

The US investor research firm - Hindenburg Research allegations that Adani Group was "engaged in a brazen stock manipulation and accounting fraud", caused a huge dent on the Adani Group firms' assets.

The firm accused Adani of accounting fraud and artificially boosting its share prices, calling it a "brazen stock manipulation and accounting fraud scheme" and "the largest con in corporate history".

Reacting to the allegations, Adani group likened the damning allegations made by short seller Hindenburg Research to a "calculated attack" on India, its institutions and growth story, saying the allegations are "nothing but a lie".

In a 413-page response, Adani Group said the report was driven by "an ulterior motive" to "create a false market" to allow the US firm to make financial gains.

This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," it said.