On Friday, January 27, the Congress urged that the Securities Exchange Board of India (SEBI) investigate the Adani group's Hindenburg report. Jairam Ramesh, the party's general secretary, remarked, "The allegations require serious investigation by those who are responsible for the stability and security of the Indian financial system, viz. the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI)."
According to him, the Adani Group's substantial exposure to financial institutions like the State Bank of India (SBI) and the Life Insurance Company of India (LIC) has repercussions for both the stability of the financial system and the millions of Indians whose funds are managed by these institutions. It's important to remember that the Adani Group was referred to in earlier investigations as being "seriously over-leveraged."
Congress questions liberal investments of Modi government in Adani group
The Modi government may have put India's financial system at risk of systemic concerns by making liberal investments in the Adani Group, according to the claims of financial misdeeds made by crucial state corporations like LIC, SBI, and other public sector banks, he claimed.
"These institutions have liberally financed the Adani Group even as their private sector counterparts have chosen to avoid investing because of concerns over corporate governance and indebtedness. As much as 8 per cent of LIC's equity assets under management, amounting to a gigantic sum of a,74,000 crore, are in Adani companies and comprise its second-largest holding.
State-owned banks have lent twice as much to the Adani group as private banks, with 40 per cent of their lending being done by SBI," he wrote in a letter.
