After Hindenburg Report, The Government Is Reviewing Adani Documents

According to Republic sources, the Center is examining the documentation of the Adani Group. According to sources, the Union Ministry of Corporate Affairs is reexamining the Adani Group's documentation.

This is the first government investigation into the gigantic company Adani. Only regulators were scanning documents till recently.

Since the US-based short-seller group Hindenburg released a report claiming a series of charges against the Adani Group, the stock price of the Adani Group has experienced significant fluctuations. The report has been referred to as  'rife with conflict of interest'. by the Adani Group, which is led by Gautam Adani.

On the same day that the State Bank of India (SBI), Life Insurance Corporation of India (LIC), and Bank of Baroda (BoB), all public sector lenders, released statements on the state of their finances in relation to their exposure to the volatility in the stocks of the Adani Group, the government announced that it would review the Adani documents.

Dinesh Kumar Khara, the chairman of SBI, stated that despite the turmoil inside the Adani Group, the public sector bank does not see any challenges. As of December 31, 2022, Khara added, the bank's entire exposure was 0.88% of its total loan book.

The public-sector insurance company stated that "All the investments of the LIC including in equities are made following the company's risk management framework," 

Even India's central bank, the Reserve Bank of India (RBI), released a statement on Friday. RBI stated,  "There've been media reports expressing convern about the exposure of Indian banks to a business conglomerate. As the regulator and supervisor, RBI mantains a constant vigil on banking sector and on individual banks to maintain financial stability."

According to Union Finance Secretary TV Somanathan on Friday, the turbulence on the stock market brought on by the decline in Adani Group shares is little more than a "storm in a teacup."