That the Supreme Court panel looking into the Hindenburg allegations didn’t find any evidence of regulatory failure on the part of SEBI, has raised questions about the investigation and enforcement functions of SEBI.
The questions on the ultimate chain of ownership of the 13 overseas entities that hold Adani Group stocks were not answered by the expert committee, largely owing to the removal of provisions by the SEBI requiring FPIs (foreign portfolio investors) to disclose ‘every ultimate natural person ‘ at the end of every chain in the FPI.
SEBI needs to come clean on the issues raised in the Hindenburg report as that is crucial for maintaining its credibility as an institution and protecting the integrity of the Indian stock market and safeguarding the interests of investors.
The Supreme Court granted the Securities and Exchange Board of India (SEBI) more time to complete its investigation into Hindenburg Research’s allegations on Adani Group firms.
Ahead of the Court’s original May 2 deadline, SEBI had sought at least six more months, citing complexities and the need to unravel layered deals it deemed “suspicious”.
The market watchdog has now got a three-month reprieve. But the findings of a six-member expert panel, tasked by the Court to review Indian securities market’s overall regulatory and investor protection framework in the wake of the dizzying volatility in Adani Group stocks’ prices, do not inspire much hope for an expedient closure.
With reference to the article ‘₹2000 note recall, the right move’ (May 24), the RBI’s though the Unique payment interface has replaced cash transactions to a greater extent, the volume of transactions in small denominational currency and coins usage is still hgh, though their value may be low.
As per 3M money supply theory, every ₹100 printed or lent to government, all scheduled banks would create money in the financial ecosystem to the value of ₹300. But, as per the currency profile chart, the banking ecosystem has created six times of cental bank issue department lending to government despite 4 per cent cash reserves ratio of aggregate deposits.
Further, the foreign reserves of RBI is around $600billion, that is twice the amount of money supply.
As the assets and liabilities of issue department is not matching as per section 33 and 34 of RBI Act 1934, has raised questions over financial stability.
Panagudi (Tamil Nadu)
Pakistan on boil
This refers to the article ‘Unbridled chaos in Pakistan’, (May 24). Pakistan is facing a multidimensional crisis. Its economy is teetering on collapse due to numerous causes.
Weak governance and political instability have been significant factors, weakening investor confidence in the country and contributing to corruption that undermine the country’s fiscal position. Pakistan is also highly import-dependent, particularly with regard to energy, which renders it acutely vulnerable to hikes in global oil and gas prices.
Food and fuel prices are causing real pain to ordinary people. Also, Pakistan’s tense relations with India continue to deprive it of a potential trading and investment partner.
N Sadhasiva Reddy