Raghuram Rajan on Adani Group: Former Reserve Bank of India (RBI) Governor Raghuram Rajan has raised some questions on market regulator SEBI in the case related to Adani Group. Raghuram Rajan has questioned the Indian stock market regulator SEBI for not yet conducting any investigation into the ownership of suspicious firms based in Mauritius and said why SEBI did not see the need to investigate what was said in the Hindenburg Research report. Gone, this issue is big.
Raghuram Rajan mentions Mauritius firms
According to Raghuram Rajan, these four Mauritius-based funds are said to have invested about 90 per cent of their $6.9 billion fund in Adani Group shares. When no investigation was done in this matter, he questioned whether SEBI needed the help of investigative agencies for this also? Mauritius-based Elara India Opportunities Fund, Cresta Fund, Albula Investment Fund and APMS Investment Fund have been under the scanner for the last two years after allegations were made that they were shell companies. These companies again came into the limelight in January this year when American firm Hindenburg Research alleged that Adani Group used shell companies to inflate its share price. However, the Adani Group has repeatedly denied these allegations.
The issue of letting regulators do their job – Raghuram Rajan
Raghuram Rajan raised questions on the stand of Securities and Exchange Board of India- Securities and Exchange Board of India (SEBI) during an email interview with Bhasha. They said, "The point is to reduce the non-transparent relationship between government and business, and to really let regulators do their jobs. Why is SEBI yet to track down the ownership of Mauritius funds that are trading in Adani shares? Does he need the help of investigative agencies for this?"
Adani Group shares fall heavily after Hindenburg Research report
As these investment funds are registered in Mauritius, their ownership structure is not transparent. Mauritius is included in those countries where there is no corporate tax. After the Hindenburg report, there has been a huge fall in the shares of Adani Group. During this period the market valuation of the listed companies of this group has halved.
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