Answer on LIC, SBI's exposure to Adani stocks: BRS leaders to Modi govt

Jan 29, 2023 06:23 AM IST

The ports-to-energy conglomerate, helmed by Gautam Adani, has come under attack from US short-seller Hindenburg Research, leading to a sharp fall in shares of group companies and the lenders that have exposure to it.

Leaders of the ruling BRS in Telangana on Saturday said the Hindenburg report on Adani Group and subsequent plunge witnessed by the market are extremely worrisome and the Centre needs to answer serious questions on the “large exposure” of LIC and SBI to Adani stocks. State municipal administration minister K T Rama Rao, son of Telangana chief minister K Chandrashekhar Rao, wondered who pushed country's largest lender and the largest state insurer to such exposure to Adani Group stocks. (Also Read | LIC, SBI savings at risk amid Hindenburg vs Adani? Here's what banks said)

The Hindenburg Report has pointed to the alleged manipulation of stock price by the Adani Group and alleged financial irregularities. (AP)
The Hindenburg Report has pointed to the alleged manipulation of stock price by the Adani Group and alleged financial irregularities. (AP)

"There are serious questions that need to be answered by the NDA Govt on #HindenburgReport. Why do LIC & SBI have such large exposure 77,000 Cr & 80,000 Crore to Adani group stocks? Who pushed them to do so? Who was aiding & abetting them in this entire episode?," K T Rama Rao tweeted.

BRS MLC K Kavitha, daughter of Chandrasekhar Rao, said in a statement that the central government should answer all the questions in the wake of the "fall and fluctuations in the LIC and SBI and market on the whole."

“The recent fall and fluctuations in the LIC, SBI and market on the whole, after the recent report on Adani Group is extremely worrisome. Every Indian deserves an explanation and it is the responsibility of the government of India to answer all the questions," the Bharat Rashtra Samithi leader said in a statement.

"I request Finance Minister Nirmala Sitharaman Ji and SEBI chief Madhabi Puri Buch Ji to not only initiate recovery measures but also have a conversation with millions of investors and dependent households who have already started facing the brunt," Kavitha added.

The stocks of Adani Group and the lenders that have exposure to it took a beating after the US-based investment research firm Hindenburg Research alleged that the group had committed "brazen" corporate fraud. Opposition parties, including Congress, raised concerns over its implications for financial stability and savings of crores of Indians in financial institutions such as Life Insurance Corporation and State Bank of India.

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