Tag: Jairam ramesh

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Congress slams govt. over fall in LIC’s market capitalisation

Congress slams govt. over fall in LIC's market capitalisation

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Congress General Secretary in-charge Communications Jairam Ramesh. File

Congress General Secretary in-charge Communications Jairam Ramesh. File
| Photo Credit: ANI

As the Life Insurance Corporation (LIC) marked one year since listing its shares on the stock exchanges, the Congress on May 17 attacked the Modi Government over the fall in the firm’s market capitalisation.

The country’s largest insurer LIC had this day last year listed its shares on the NSE and the BSE, and Congress general secretary Jairam Ramesh sought to link the decline in the market cap of the firm to the investment in Adani companies, a charge rejected by the BJP which accused him of misleading people with “half information”.

In a tweet, Mr. Ramesh said, “Exactly a year ago today, LIC was listed in the stock market. Its market capitalisation then stood at ₹5.48 lakh crore. Today, this is down to ₹3.59 lakh crore a fall of a whopping 35%!” “There is only one reason for this steep fall Modani. In the process, lakhs and lakhs of policyholders have taken a serious hit,” he said and tagged a screenshot of a media report which claimed that LIC share has wiped out ₹1.9 lakh crore since listing.

The BJP hit back at Mr. Ramesh with the saffron party’s Information Technology department head Amit Malviya saying that the LIC’s exposure in Adani Group was less than 1%.

The Congress has been attacking the government over the fall in the value of LIC’s holdings in the Adani Group and had asked who “forced” this pillar of India’s financial system to take such a  risky exposure to the conglomerate.

The Congress has been demanding a Joint Parliamentary Committee probe into the allegations against the Adani Group by U.S.-based short-seller Hindenburg Research. The Adani Group has dismissed the allegations as baseless.



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On SC ruling on Adani row, Congress says any committee other than JPC an exercise in legitimisation, exoneration

Jairam Ramesh

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THE SUPREME Court’s direction to the SEBI to probe within two months allegations of stock price manipulation by the Adani group and any lapses in regulatory disclosures did not enthuse the Congress, which asserted that only an investigation by the Joint Parliamentary Committee can bring out the truth and industrialist Gautam Adani’s relationship with the Prime Minister.

The party said it would continue to raise the demand in Parliament when it reconvenes on March 13. “If the Prime Minister and his government are to be held accountable, any committee other than a JPC will be nothing but an exercise in legitimization and exoneration,” Congress communication head Jairam Ramesh said.

He said the probe by a SEBI committee will be limited to violation of the regulator’s laws and regulations and issues like investor protection but the Adani issue is much more than that. “The Supreme Court committee is only of limited relevance in the context of what this controversy is all about,” he said.

“In the Adani case, the Supreme Court committee is limited only to the investigation of violations of SEBI law and regulation. The truth of what has been the relationship between Prime Minister Modi and (Gautam) Adani will never come to the fore if JPC is not formed,” he said.

“We are demanding the setting up of a JPC which has powers to procure information from any institution….can summon anyone. The questions that we are asking cannot be answered by an expert committee. Those questions can only be answered by a JPC. Will the Supreme Court committee answer how it is that Mr Adani got the contract for running six airports when the recommendation of the Department of Economic Affairs…was that one bidder should not get more than two airports… Will the Supreme Court committee answer this question?,” he asked.



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Congress writes to RBI & Sebi, seeks probe into Adani case | India News

Congress writes to RBI & Sebi, seeks probe into Adani case | India News

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NEW DELHI: Claiming that the ‘PM-blessed’ Adani group is facing trouble raising funds abroad while being “heavily over-leveraged”, Congress on Wednesday wrote to the Reserve Bank of India asking for “implicit or explicit government assurances” given to the business conglomerate about a future bailout in case of financial troubles with foreign entities.
The AICC has also asked Sebi for a probe into the “overvalued” Adani scrips, and why was a high exposure of top public companies like LIC and SBI allowed into the group which has cost ordinary Indians crores of rupees in the recent market turbulence.
Congress general secretary Jairam Ramesh shot off letters to RBI chairman Shaktikanta Das and Sebi chairperson Madhabi Puri Buch, demanding probes into allegations of financial irregularities and stock manipulation, including round tripping and use of shell companies to over value the stocks, against the “influential business house”.
Addressing Das, Ramesh said RBI should ensure that “excessive debt exposure” by the Adani group does not destabilise India’s banking system, talking of a possible “contagion”. “The Adani group has been described as ‘deeply over-leveraged’ – if the Adani group has artificially inflated the value of its stock through manipulation by offshore shell companies and raised funds by pledging those overvalued shares, the recent sell-off in stock prices is creating vulnerabilities for the Adani group to find financing, and by implication for India’s banking system,” he noted, specifically seeking RBI focus on real Adani group exposure of the Indian banking system and the possible government guarantees to the Adanis that it will be given a bailout should foreign funding dry up.
“Will RBI ensure that Indian banks are not forced to step in to substitute for any shortfall in foreign financing, especially given the Adani group’s political connections,” Ramesh asked.
Talking about charges of manipulation against the business group in his letter to the Sebi chief, Ramesh said, “Apart from the potential violation of several Indian laws, this goes against everything that Sebi stands for. We urge you to investigate all potential violations and ensure complete transparency about who is investing in Adani group companies.”
He said inclusion of Adani Enterprises in the “National Stock Exchange Nifty 50 index” in September 2022 occurred despite the firm’s weak fundamentals, an excessive price-to-earnings ratio and a tiny free-float. He complained that the stock remains in key Indian indices despite global indices having suspended the group.



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Congress’ Jairam Ramesh writes to RBI, SEBI chiefs seeking probe into allegations against Adani Group

Congress’ Jairam Ramesh writes to RBI, SEBI chiefs seeking probe into allegations against Adani Group

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Congress General Secretary in-charge Communications Jairam Ramesh Wednesday said he had written to Reserve Bank of India (RBI) Governor Shaktikanta Das and Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch seeking a probe into the allegations levelled against the Adani Group by New York-based-Hindenburg Research.

In his letter, Ramesh urged the central bank to look into two aspects of the issue: “One, what is the true Adani exposure of the Indian banking system? Two, what are the explicit and implicit guarantees that the Adani Group has been given that it will be bailed out by Indian banks if foreign funding dries up?”

Ramesh wrote that the RBI “must ensure that risks to financial stability are investigated and contained”.

In his letter to the SEBI chief, meanwhile, Ramesh called for an investigation that is “fair and complete, with no favour”.

“Any failure to do so will cast a shadow on Indian corporate governance and on India’s financial regulators, and could affect our ability to raise funds globally,” the letter read.

Ramesh also questioned why Life Insurance Corporation (LIC) and the State Bank of India (SBI) have heavily bought Adani Group equity.

“LIC, which 30 crore Indians trust with their life savings, has lost thousands of crores in Adani Group stock in recent days. Should we not ensure that such public sector financial institutions are more conservative in their investments than their private sector counterparts and free from pressure from above?” he wrote.

After the Hindenburg report alleged stock manipulation and fraud by the conglomerate, share prices of companies in the Adani Group have dropped significantly. The Adani Group has denied all allegations, and accusing Hindenburg of being “an unethical short seller”, and saying its report is a “lie”.

During the budget session of Parliament which ended earlier this week, Opposition lawmakers led by the Congress repeatedly disrupted proceedings in both Houses to demand a probe on the Adani Group crisis either by a Joint Parliamentary Committee (JPC) or a Supreme Court-monitored probe.



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