According to sources familiar with the situation, India’s market regulator will provide a report to the finance minister this week regarding its probe into the Adani Group’s abandoned $2.5 billion follow-on public offering.
According to sources who spoke on the condition of confidentiality because they were not authorised to talk to the media, the Securities and Exchange Board of India (SEBI) board is slated to meet with Finance Minister Nirmala Sitharaman on February 15.
The sources stated that the SEBI board will inform the minister of the firm’s monitoring actions during the most recent decline in the price of Adani Group equities.
Since a damning analysis by a U.S. retail investor in late January, the market price of the companies listed by the Indian conglomerate has fallen by more than $1 trillion. Adani Enterprises Ltd., the firm’s dominant company, cancelled its share sale as a result of the bankruptcy.
The sources continued, “An update on examinations into international fund flows into Adani Group firms is also probably.”
An email from Reuters seeking comment was not fully responded to by SEBI.
The market regulator is investigating the firm’s share market meltdown in full, according to Reuters, which also includes looking at transaction patterns, inconsistencies in the abandoned share sale, as well as the company’s offshore holdings.
To guarantee that the stock prices of the Adani Group firms were stable, the regulators implemented a number of surveillance measures.
According to the reports, this would be covered in the briefing given to the finance minister on Wednesday.