SEBI has given a statement on the ups and downs of the market
Mumbai/New Delhi:
Capital markets regulator Securities and Exchange Board of India (Sebi) said it has observed “unusual price movement in the trading group’s shares” in the past week amid a fall in Adani shares.
“SEBI is committed to ensuring market integrity and ensuring that appropriate structural strength is maintained to enable markets to function in an uninterrupted, transparent and efficient manner,” SEBI said in a statement today.
Adani group companies saw their share prices continue to slide on Friday amid selling pressure as well as concerns about any systemic impact from the dislocation triggered by a US short-seller report critical of the group’s finances. Hui.
“During the last week, unusual price movement has been observed in the shares of a trading group. As part of its mandate, SEBI seeks to maintain the orderly and efficient functioning of the market and a set of well-defined, publicly Monitoring measures available (including the ASM framework) to address excessive volatility in specified stocks,” Sebi said in the statement. It did not name the Adani group.
“This mechanism gets triggered automatically under certain conditions of price movement in any stock,” the regulator said.
Sebi’s statement comes a day after the Reserve Bank of India (RBI) said the country’s banking system remains resilient and stable amid concerns about the risk exposure of lenders to Adani group companies.
Shares of Adani group firms have lost more than half of their market value, or a combined $100 billion, following allegations by US short-seller Hindenburg Research of high debt levels and use of tax havens.
The ports-to-energy conglomerate led by Gautam Adani, one of the world’s richest men, has brushed off the criticism and denied wrongdoing. In a 413-page reply, the Adani Group said the Hindenburg report was motivated by “an ulterior motive” to “create a false market” to allow the US firm to reap financial benefits.
Adani Enterprises Ltd also closed its Rs 20,000 crore follow-on share sale, a day after it was fully subscribed. Adani said the company’s board felt that it “would not be ethically correct to go ahead with the issue” amid the market turmoil.
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