India’s financial sector regulators are seized of the matter

Amid concerns over the ongoing controversy related to the Adani group, Union Finance Minister Nirmala Sitharaman on Saturday said the country’s financial sector regulators are seized of the matter and have been always on their toes, not just now.

“India’s regulators, and I am sitting in the company of a very senior regulator, one of the oldest regulators…India’s regulators are very, very experienced. And they are experts in their domain. The regulators are fairly seized of this matter. They are on their toes, as always, and not just now,” Sitharaman said in a press briefing after the 600th meeting of the Central Board of Directors of Reserve Bank of India (RBI).

The minister’s comments come a day after the Supreme Court asked the Centre and market regulator Securities and Exchange Board of India (SEBI) to suggest measures to strengthen the regulatory mechanism and protect Indian investors from market volatility like the one witnessed in the wake of the Hindenburg Research report on the Adani Group. When asked about the government’s response on the petition in the SC, Sitharaman did not give details and said the response of the government will be outlined in the court.

A three-judge bench, headed by Chief Justice of India D Y Chandrachud, on Friday had pointed out that the stock market has seen the rising presence of the middle-class and there was a need, therefore, to scale up security measures in tune with India’s changing status on the world stage.