Former Reserve Bank of India (RBI) Governor Raghuram Rajan on Sunday questioned the Securities and Exchange Board of India (SEBI) on why the markets regulator did not reach out to probing agencies if it needed help looking into Adani Group’s Mauritius links.
What Happened? In an interview with PTI, Rajan asked, “Why has SEBI not yet got to the bottom of the ownership of those Mauritius funds which have been holding and trading Adani stock? Does it need help from the investigative agencies?”
In the context of the allegations raised by short-seller Hindenburg Research against Adani Group, "I don’t think the issue is of more oversight over private companies," added Rajan when asked if the government should take measures to improve oversight of private family companies.
The issue is of reducing non-transparent links between government and business, and of letting, indeed encouraging, regulators to do their job, said the celebrated economist.
The country’s Supreme Court last week formed a committee to investigate the Adani-Hindenburg row. The court also asked SEBI to investigate if the Adani group had violated the securities acts and rules and whether there was any manipulation involved with Adani stocks.
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Chief Justice of India DY Chandrachud said the six-membered expert committee shall be headed by former Supreme Court judge Justice Abhay Manohar Sapre and include KV Kamath and Nandan Nilekani.
Meanwhile, a Bloomberg report suggests that the Adani Group has extended a worldwide roadshow with the management seeking to reassure investors that the firm’s finances are under control.
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