Congress questions SEBI inaction on Adani stocks

Delhi: The National Stock Exchange (NSE) has lifted additional surveillance on some Adani Group company stocks, the Congress claimed on Friday and asked why the Securities and Exchange Board of India (SEBI) is allowing investors to take on added exposure to such stocks.

Even as global index providers such as MSCI, S&P Dow Jones and FTSE Russell reviewed the position of the Adani stocks in their equity indices, the NSE went the other way and included five Adani Group companies in no less than 14 indices beginning March 20, Congress general secretary Jairam Ramesh said.

The NSE announced that Adani Enterprises, Adani Power and Adani Wilmar would from Friday exit the additional surveillance mechanism framework that was put in place to protect investors from excessive risk, Ramesh claimed.

Jairam Ramesh lashed out on SEBI

"Surely the timing is not a coincidence? Why is SEBI standing by as the NSE chooses to protect the Adani Group's interests rather than that of lakhs of small investors? Why is SEBI allowing index investors to take on additional exposure to Adani Group stocks when financial advisors, who generally wealthier investors can afford, have been advising their clients to avoid investing in Adani Group stocks?" the Congress leader asked.

Ramesh also said that almost a month after the revelations of wrongdoing in the Adani Group, the CEO of the Bank of Baroda said the bank would continue to lend money to the business conglomerate led by industrialist Gautam Adani.

“This statement came at a time when the value of Adani collateral in the form of pledged stock had collapsed by more than half, prompting margin calls by big global lenders concerned about repayment and fresh questions about the group's ability to service and repay its huge debt,” he said.