FM Sitharaman responds to SC concerns on Adani crisis: ‘RBI on toes…’

“India’s regulators are very experienced and they are experts in their domain. Regulators are very seized of this matter. They are on their toes as always, not just now. So I will leave it there,” Sitharaman said. 

“You obviously not expecting me to tell you what I would tell in the court.” the finance minister told reporters refusing to elaborate on the topic further. 

Sitharaman was addressing a joint conference following the customary post budget meeting of the Central Board of Directors of the apex bank. She briefed the RBI’s Central Board of Directors on the recently-released Union Budget for the year 2023-24.

‘Do we have a mechanism to ensure this doesn’t happen again?’ SC to Govt

The Apex Court, on Friday, observed that investors protection is paramount while it was hearing a petition seeking the Apex Court’s intervention in the Adani row. 

Chief Justice DY Chandrachud said, “Do we intervene and have a mechanism to ensure this doesn’t happen again? We do not want to get into policy matters. That is for the government.”

The Apex Court have sought more clarity from the Finance Ministry and Sebi on how they are planning to ensure that investors interest is protected. 

India’s regulators are normally very stringentr: FM claimed last week

Last week also, the finance minister claimed that India’s financial sector stating that it is ‘very well regulated’ and, ‘one instance, no matter how much it is talked about globally, is not going to be indicative of how well Indian financial markets have been governed’.

“India remains as before, absolutely well-governed with a stable government and a well-regulated financial market. As a result, the investor confidence which existed before shall continue even now. Our regulators are normally very stringent about certain governance practices. One instance should not be going to be indicative.”

Commenting on the SBI and the LIC getting tangled in the controversy, the finance minister said their exposure to Adani Group stocks is very well within the permitted limits.

(With inputs from agencies)