The US short-seller Hindenburg Research has attacked the Gautam Adani-led ports-to-energy conglomerate, which has caused a dramatic decline in the stock price of group firms and lenders with exposure to it.
Leaders of the BRS, which is in power in Telangana, stated on Saturday that the Hindenburg report on the Adani Group and the consequent market decline are very concerning and that the Centre needs to provide serious answers regarding the “huge exposure” of LIC and SBI to Adani equities. K T Rama Rao, state minister for municipal affairs and the son of Telangana chief minister K Chandrashekhar Rao, questioned who had led the biggest state insurance and lender in the nation to have such exposure to Adani Group equities.
Leaders of the BRS, which is in power in Telangana, stated on Saturday that the Hindenburg report on the Adani Group and the consequent market decline are very concerning and that the Centre needs to provide serious answers regarding the “huge exposure” of LIC and SBI to Adani equities. K T Rama Rao, state minister for municipal affairs and the son of Telangana chief minister K Chandrashekhar Rao, questioned who had led the biggest state insurance and lender in the nation to have such exposure to Adani Group equities.
“There are serious questions that need to be answered by the NDA Govt on #HindenburgReport. Why do LIC & SBI have such large exposure ₹77,000 Cr & ₹80,000 Crore to Adani group stocks? Who pushed them to do so? Who was aiding & abetting them in this entire episode?,” K T Rama Rao tweeted.
The central government should respond to all queries following the “collapse and fluctuations in the LIC and SBI and market on the whole,” according to BRS MLC K Kavitha, Chandrasekhar Rao’s daughter.
“It is really concerning to see the recent decline and swings in the LIC, SBI, and market as a whole following the recent report on the Adani Group. Every Indian is entitled to an explanation, and it is the duty of the Indian government to do so, according to a statement from the Bharat Rashtra Samithi leader.
“I ask SEBI Chairman Madhabi Puri Buch Ji and Finance Minister Nirmala Sitharaman Ji to not only undertake recovery efforts but also have a talk with millions of investors and dependant households who have already started feeling the brunt,” Kavitha continued.
Following allegations of “brazen” corporate fraud made by the US-based financial research firm Hindenburg Research, the stocks of Adani Group and the lenders who have exposure to it have fallen. Concerns about its effects on financial stability and the deposits of millions of Indians in financial institutions like State Bank of India and Life Insurance Corporation were expressed by opposition parties, including Congress.
