Sitharaman said: “…our macroeconomic fundamentals or the image of our economy, neither of these have been affected.” Yes, the FPOs (follow-up public offerings) keep coming and the FIIs keep coming out.
Finance Minister Nirmala Sitharaman said on Saturday that the withdrawal of Adani Group’s Rs 20,000 crore follow-on public offering (FPO) has not affected the image of the country’s economy. Addressing a post-budget press conference here, the Finance Minister said US$8 billion worth of foreign exchange has arrived in the last two days alone. Sitharaman said: “…our macroeconomic fundamentals or the image of our economy, neither of these have been affected.” Yes, the FPOs (follow-up public offerings) keep coming and the FIIs keep coming out.
He said that every market has its ups and downs, but the growth of the past few days shows the fact that there is faith in India and its strength. Responding to a question about the allegations made against the Adani group, he said that the regulators will do their job on this matter. The Securities and Exchange Board of India (SEBI) has the means to ensure the stability of the markets. He said, … SEBI is the authority to regulate the markets in due course. He has the means to maintain this perfect position.
Referring to his statement on Friday, the Finance Minister said that the RBI has already stated that the banking sector is strong and stable. About 10 days ago, the US ‘short seller’ and financial research company Hindenburg made several allegations of wrongdoing on the front lines of the company’s operations against the Adani group. Ahmedabad-based Adani Group has denied all the allegations, calling it a planned attack on India. Due to falling shares of Adani Enterprises, its FPO was canceled despite being fully subscribed.
When asked about the announcement made in the 2022-23 fiscal year for the privatization of two public sector banks, Sitharaman said there is no more recent information on it that she can count on. On this occasion, Finance Secretary TV Somanathan stuck to her comment that she called the Adani episode a storm in a teacup. An unimportant topic is being unnecessarily worried. On the decision to convert the shares into Vodafone Idea shares, Somnath said that the transaction is carried out as part of the package offered to all telecommunications companies.
DIPAM Secretary Tuhin Kant Pandey said the transaction was done at Rs 10 per share despite the drop in Vodafone Idea shares, as per the laws, preferential allocation is done at par value of shares. Responding to a question, Sitharaman said that no time frame has been set for eliminating the old tax regime and the government has only introduced a new tax regime, which is simpler and has lower rates. Officials also denied that this would affect savings in the economy.
Chief Economic Adviser V Ananth Nageswaran said citizens have options to decide what they want to do with their money. Responding to a question about the controversial introduction of P-notes to GIFT City, Somanathan said it would help it compete with other international financial service centers. He said the country always reserves the right to reduce any perceived risk.
Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.