Finance Minister Nirmala Sitharaman said on Saturday that the foreign exchange reserve has increased by $8 billion in the last two days due to the Adani crisis. “FPOs arrive and depart. These fluctuations occur in all markets. However, the fact that we have had 8 billion visitors in the last few days demonstrates that the perception of India and its inherent strength remains intact “In response to the Adani FPO pullout, the finance minister stated.
Sitharaman reiterated on Friday that the market is well-regulated and that regulators will do their jobs. “The RBI issued a statement. Before that, banks and LIC disclosed their exposure. Regulators are independent of the government and are left to do what is necessary to ensure that the market is well regulated “Sitharaman explained.
“How many times have the FPOs not withdrawn from this country, and how many times has India’s image suffered as a result, and how many times have the FPOs not returned?” said the finance minister.
Adani Enterprise withdrew a 20,000 crore FPO to protect investors from potential losses following the Hindenburg report, which accused the Adani Group of stock manipulation and fraud.
As the Adani case became a political flashpoint, with the opposition demanding a court-monitored probe or a joint parliamentary committee investigation into the allegations, India’s finance minister said on Friday that the country’s financial sector is highly regulated and that one incident will not be indicative.
According to Finance Secretary TV Somanathan, the situation is a “storm in a tea cup” from a macroeconomic standpoint. On Saturday, he stated that he stands by his statement, which was criticized by opposition political leaders because he made the remark in terms of macroeconomic numbers.
