Adani's FPO pullout has not impacted India's image: FM

Mumbai:India's economic image is not affected due to Adani Group's recent decision to pull out Rs 20,000 crore FPO amid allegations of financial wrongdoings, Finance Minister Nirmala Sitharaman said on Saturday.

The finance minister said there has been an accretion of USD 8 billion to the forex reserves in the last two days alone.

"…our macroeconomic fundamentals or our economy's image, none of which has been affected. Yes, FPOs (follow-on public offers) come in, and FIIs (foreign institutional investors) get out," Sitharaman told reporters here.

The minister said there are "fluctuations" in every market but the accretion over the last few days establishes the fact that the perception of both India and its inherent strengths is intact. Answering a broader question on the allegations against Adani Group, she said the country's independent financial sector regulators will be looking into the aspect and added that capital markets watchdog Securities and Exchange Board of India has the wherewithal to ensure stability in markets.

"…for keeping the market and the markets regulated in prime condition, the Sebi is the authority. And it has the wherewithal to keep that prime condition," she said. The finance minister also said that the RBI has already spoken out on the issue, referring to Friday's statement, which said the banking sector is resilient and stable.

About ten days ago, US-based short seller Hindenberg Research made a slew of allegations on the corporate governance front against Adani Group. The Ahmedabad-based group has denied all the allegations and termed it as a calculated attack on India. It has cancelled the FPO even after managing subscriptions to it.

Finance Secretary TV Somanathan on Saturday stood by his comment on the controversy where he called it a storm in a teacup, clarifying that this is in the context of macroeconomic terms and the stability of India's public financial institutions.