Centre agrees to set up expert panel amid Adani row

The Union government has told the Supreme Court that it has no objection to setting up an expert panel to strengthen the regulatory mechanism amid the Adani dispute. In its written submission, the Center said there is no significant market-wide or system-wide impact that would warrant a system-wide review of the applicable regulatory frameworks. "The entity-level issues that emerged had a significant impact at the entity level and require a detailed assessment by the regulator," it said.

Adani shares took a massive hit following allegations by US short seller Hindenburg Research. The center said overall market volatility in India is on par with or lower than major developed markets. Indian markets have seen much more turbulent times in the past, especially during the Covid pandemic period, where the Nifty fell by around 26 per cent during the 13 trading days on March 02, 2020, it further said.

In view of increased market volatility, the Union government said Sebi has reviewed its existing market mechanisms and introduced several changes in 2020. The Centre's announcement comes at a time when Adani Group's listed companies have lost more than $100 billion in market value.

Adani Group is stepping up its efforts to counter the negative impact of the Hindenburg news on its businesses, most of which have been struggling in the stock market for nearly 20 days. The group recently hired top US law firm Wachtell to take over Hindenburg Research under pressure from global investors.