- Bank of Baroda will continue giving loans to Adani: CEO
- Banking sector resilient and stable: RBI
NE BUSINESS BUREAU
MUMBAI, FEB 4
Amid a raging controversy over a meltdown in Adani group stocks, regulator Sebi, on Saturday, said it is committed to ensuring the stock market’s integrity and all necessary surveillance measures are in place to address any excessive volatility in individual shares.
Without naming the Adani group specifically, the capital markets watchdog said in a statement that unusual price movement in the stocks of a business conglomerate has been observed in the past week.
Officials confirmed that the statement has been issued in the wake of the Adani matter only.
“As part of its mandate, Sebi seeks to maintain orderly and efficient functioning of the market and has put in place a set of well-defined, publicly available surveillance measures (including the ASM framework) to address excessive volatility in specific stocks. This mechanism gets automatically triggered under certain conditions of price volatility in any stock,” the Securities and Exchange Board of India (Sebi) said.
Stock exchanges BSE and NSE have put three Adani group companies—Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements—under their short-term additional surveillance measure (ASM), which basically means that intraday trading would require a 100 per cent upfront margin and is aimed at curbing speculation and short-selling in these stocks.
Sebi further said in all specific entity-related matters, if any information comes to its notice, then, as per extant policies, the same is examined and after due examination, appropriate action is taken.
“Sebi has consistently followed this approach on entity-level issues and would continue to do so in future as well,” it added.
Bank of Baroda will continue giving loans to Adani: CEO
Bank of Baroda MD and CEO Sanjiv Chadha said Friday that the bank will continue to lend to the Adani group if the group account meets the lender’s underwriting criteria. “For us, any lending decision is based upon, again, the assessment of risk and the return on that particular exposure. I don’t think we will be changing that at all. Anything that meets our underwriting criteria is a lendable proposition for us,” he said.
Banking sector resilient and stable: RBI
Reserve Bank of India said Friday that India’s “banking sector remains resilient and stable,” putting to rest questions emerging on PSU banks’ exposure to the Adani Group. “There have been media reports expressing concern about the exposures of Indian banks to a business conglomerate. As the regulator and supervisor, the RBI maintains a constant vigil on the banking sector and on individual banks with a view to maintain financial stability. The RBI has a Central Repository of Information on Large Credits (CRILC) database system where the banks report their exposure of Rs 5 crore and above which is used for monitoring purposes,” said RBI in a statement.
Anand Mahindra echoes the sentiment of Indian industry
Chairman of Mahindra Group Anand Mahindra, through a tweet from his official Twitter account, said, “Global media is speculating whether current challenges in the business sector will trip India’s ambitions to be a global economic force. I’ve lived long enough to see us face earthquakes, droughts, recessions, wars, terror attacks. All I will say is: never, ever bet against India.”
Adani Ports’ debt well capitalized, able to refinance bonds & attract equity investors: Goldman Sachs
Goldman Sachs traders backed Adani Ports and said that the company’s debt was well capitalized with cash on hand, while being liquid enough to trade. They also expected the company to be able to refinance its bonds while also having the prospect of attracting equity investors and selling assets. Goldman said it had traded about $170 million of Adani bonds on Thursday before the call, attracting interest from global funds and distressed investors outside of Asia looking to scoop up the debt from an early stage.
Nobody happy that Indian businessmen are making presence felt globally: Former SG Harish Salve on Hindenburg report
Speaking to India Today, the Former Solicitor General said that the accusations against the Adani Group is a wholesale assault on India and Indians, adding that most of Adani’s assets are regulated. “You have predictable revenues because you have a regulator fixing your tariff.. you can’t make a lot of money; but at least you have almost guaranteed revenues because, even today, these infrastructure projects are like monopoly projects. The other investments are in hardcore Indian assets like manufacturing cement,” he said. He also said that the records of Adani Group’s companies are in the public domain, and for someone to say that they did some hidden research is “all nonsense
