Concerned about the ongoing Hindenburg and Adani Group situation with claims of fraud, the Reserve Bank of India (RBI) intervened.
On the 2nd of February, Thursday, the RBI sought details from local banks about their exposure to Adani Groups. The decision to intervene in the matter was taken after the recent $100 million downfall of the market value in the recent days.
Moreover, on the 2nd of February, Thursday, Mr. Gautam Adani, the Chairman of the Adani Group addressed the media and announced the withdrawal of its FPOs. He said due to the market volatility, the Adani Groups would withdraw all the FPOs issued to the public and investors, worth Rs. 20,000 crores, and return the money.
The claims of the Hindenburg became a road of defeat for India’s top richest man Gautam Adani. Recently, Hindenburg released a two year investigation report claiming that Adani Groups was involved in accounting fraud and engaging in stock price manipulation.
Although the Gautam Adani led denied all the allegations, the matter has caused a huge loss to his company. Gautam Adani, who was the 4th richest man in India has now fallen to the 11th position, reported the Bloomberg Billionaire’s Index.
Moreover, on Thursday, shares in Adani group of companies plunged and shelved a $2.5 billion share sale amid a turbulent market.
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