SEBI reportedly probing ratings of Adani's loans and securities

The Adani group, triumphant about its expansion into media and the cement industry just months back, is now scrambling to stop its stock market rout. But after its French partner put a green hydrogen project on hold and Moody's downgraded its group stocks, the Adani conglomerate is finding it hard to save face among investors. In yet another blow closer to home, the Securities and Exchange Board of India (SEBI) has reportedly sought details from ratings agencies about Adani's loans.

The scrutiny by the regulator comes after a 70 per cent drop in market value for Adani, and SEBI now wants to check if this decline will affect its capacity to repay debt. The port to power conglomerate's prepayment of multiple loans to Indian banks hasn't helped its cause to establish trust about its liquidity. The ratings agencies also need to share information about outstanding ratings and the outlook on Adani Group's firms.

Previously, the RBI had dismissed concerns about the exposure of banks to Adani, by saying that it is limited. LIC had also issued a similar statement about its exposure, and the Finance Ministry has expressed confidence in the capabilities of agencies to look into the matter.

But the Adani rout has also spooked investors, after its shareholders lost Rs 40,000 crore in just one day on Wednesday. This also led to a drop of almost 1000 points in the Indian stock market indices.