9 listed companies of Adani Group witnessed decline of around 60% after Hindenburg Research

The Minister of State in Ministry of Finance, Shri Pankaj Chaudhary in a written reply to question raised in Lok Sabha Stated, “9 listed companies of Adani Group witnessed decline of around 60% after Hindenburg Research.”

The Securities and Exchange Board of India (SEBI), as the statutory regulator of securities markets, is mandated to put in place regulatory frameworks for effecting stable operations and development of the securities markets including protection of investors. As per its mandate, it conducts investigations into any alleged violations of its Regulations by any market entity. It is, accordingly, undertaking investigation into the market allegations against the Adani Group of companies.

The nine listed companies forming part of Adani Group witnessed a decline of around 60% of market capitalization from January 24, 2023, till March 01, 2023 subsequent to the report published by Hindenburg Research. These companies are not part of Sensex and have a combined weight of below 1% in Nifty.

The volatility in the stocks of these companies have not had any significant impact at the systemic level. Nifty 50 declined by around 2.9% in the month of January 2023 and by around 4.9% in the 2-month period of January and February 2023.

The pricing of individual stocks and variations, over or undervaluation, and the price risks borne by investors are determined by the dynamics of demand and supply. The regulatory framework provides for surveillance mechanisms which are triggered in instances of volatility in share prices of specific companies.