Guwahati: The Reserve Bank of India (RBI) has reportedly asked Indian banks for details of their exposure to the Adani Group’s companies.
This comes after US short-seller Hindenburg Research alleged that Adani Group is involved in stock manipulation and accounting fraud.
CNBC-TV18 reported that the RBI sought this information as part of a new SoP to address “new developments that may have taken place.”
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The ‘new developments’ refer to the fallout of the allegations, where companies of the Adani conglomerate have lost billions. Furthermore, Adani had planned a Rs 20,000 crore (US $2.5 billion) share offering but cancelled it a day ago.
The reports stated that it is standard practice for the RBI to seek information in such cases, as central databases may not have the latest information, especially on pledged shares.
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The Central Repository of Information on Large Credits (CRILC) collects, stores, and publishes data on all borrowers’ credit exposures, but only updates “some data weekly and some, monthly.”
Meanwhile, Securities and Exchange Board of India (SEBI) is undertaking a full-scale examination of the fall in shares. Citigroup Inc.’s wealth arm and Credit Suisse Group AG have also stopped accepting securities of Adani Group firms as collateral for margin loans.