The Adani imbroglio is unlikely to hit systemic stability3 min read . Updated: 07 Feb 2023, 12:40 AM IST
Debt and retail equity exposure in India to the group is not too high but a timely probe needs to be carried out
On 24 January, Hindenburg Research, a New York-based short-selling firm, dropped a bombshell by releasing “findings of research" that charged Gautam Adani, his kin and group companies with having indulged in market manipulation and accounting fraud. The impact was such that the stock prices of Adani Group companies tumbled and could attain some stability only late last week. Finance minister Nirmala Sitharaman had to reassure the Indian public of Life Insurance Corporation’s and State Bank of India’s manageably low exposures to the group. While unfounded allegations and assertions are flying around—made by Adani’s adversaries as well as supporters, with the former claiming a devastating blow to our capital markets and the latter playing it down completely—we should dispassionately dissect the impact of this report whose veracity needs to be tested by a trustworthy institutional investigation.