Piyush goyal regulator competent to handle adani group crisis

Indian politician Piyush Goyal is a Bharatiya Janata Party member (BJP). He has served as the Minister of Railways Commerce and Industry in the Government of India.

Goyal is a chartered accountant by profession and has previously held positions as the Minister of Power and Coal and the Minister of State with Independent Charge for Mines in the Government of India.

He has been a Member of Parliament in the Rajya Sabha, the upper house of the Indian Parliament, and has also been the National Treasurer of the BJP.

The allegations of fraud against billionaire Gautam Adani’s companies, which led to an unprecedented stock crash, were addressed by Union Minister for Commerce and Industry Piyush Goyal on Saturday. He claimed that regulators are well-equipped to handle the situation and will take the necessary action.

He also called it “unfortunate” that the opposition was delaying the Parliament’s discussion of the matter.

“Our financial markets are among the most highly reputable and well-regulated in the world, thanks to India’s most highly skilled regulators.” “Regarding the loss, it is the loss in share market valuation and not the loss of any specific person’s or group’s wealth,” Goyal told local media.

He said that although investments in shares and stocks fluctuate, that is a routine component of investing and that nowhere has the people of India lost the amounts that are mentioned.

This was in response to concerns from the objection that the government is wanting to avoid the conversation of the Adani issue and the estimated USD 100 billion loss (USD 100 billion).

The Minister stated that the financial institutions have already made it clear that their customers’ money is completely secure and safe, and that the two major organizations, LIC and State Bank, have both released information.

I believe a few of the allegations are based on an investigation published by a foreign government and concern a privately-held company, and regulators “will take appropriate action on that,” he said.

In a reply to a question, the minister stated that, while no one in the world guarantees the stock market, banks and other financial institutions are constantly monitoring the situation.

“I can definitely assure you and ascertain that our regulators are expertly managing the situation,” she said.

Since Hindenburg Research accused Adani Group of stock manipulation and accounting fraud in its report dated January 24, the company’s market value has decreased by more than USD 100 billion.

While denying any culpability, the group has threatened lawsuits against Hindenburg.

When questioned about the opposition’s complaint that the SEBI is not acting, Goyal responded, “That’s what the opposition claims, but we have no idea what actions they are taking or what data they are gathering.” “It can only be discussed with SEBI.”

He added that SEBI is an autonomous regulator and makes decisions on its own.

Goyal, who also serves as the Leader of the House in the Rajya Sabha, responded, “It is very unfortunate because Parliament is a forum for dialogue and debate.

In contrast to their claim that they are holding up Parliament, he said, “we were going to have a debate to discuss the successfulness of the government, which again was articulated in the president’s address.

It was an opportunity for the opposition to place their viewpoints and let the world know what their view is about our performance.”

Additionally, he urged the opposition to permit discussion of the budget and the motion of thanks for the president’s address.

When asked if Prime Minister Narendra Modi and his administration have been targeted because of the Adani controversy, the Minister said, “I would not like to venture a comment of that nature. Indians, in my opinion, are intelligent people who can form their own opinions.

SEBI says they have surveillance measures in place:
The market regulator Securities and Exchange Board of India (Sebi) today stated that surveillance measures are in place to address excessive volatility after the market value of Adani stocks dropped by almost 50% in 7 trading sessions as a result of explosive allegations made in the Hindenburg report.

The ASM framework is one of several clearly defined, publicly accessible surveillance measures (including those put in place by SEBI as part of its mandate) that have been implemented to address excessive volatility in particular stocks.

According to a statement from Sebi, this mechanism is automatically activated when a stock’s price volatility meets certain criteria.

The regulator stated that during the previous week, unusual price movement in the stocks of a business conglomerate has been observed without naming the carnage in Adani stocks worth Rs 9.1 lakh crore.

According to Sebi, if any information regarding a specific entity comes to the watchdog’s attention, it is examined following current policies, and after an adequate examination, the proper action is taken.

As stated in the statement, Sebi “has consistently adhered to this approach on entity level issues and therefore would continue to do so in the future as well.

Sebi is dedicated to maintaining market discipline and to ensuring that the markets continue to have the appropriate structural strength to function in an uninterrupted, transparent, and productive way as has been the case so far.”

 

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