India’s market regulator will update the finance ministry this week on its investigation into the Adani Group‘s withdrawn $2.5 billion follow-on public issue, two sources familiar with the matter said on Monday. The board of the Securities and Exchange Board of India (SEBI) is scheduled to meet Finance Minister Nirmala Sitharaman on Feb. 15, the sources said, speaking on condition of anonymity as they are not allowed to speak to the media.
The SEBI board will brief the minister on surveillance measures taken by the regulator during the recent rout in Adani group stocks, the sources added. The Indian conglomerate’s listed entities have lost more than $100 billion in market value since a scathing report by a U.S. short seller in late January. The rout also led the group’s flagship Adani Enterprises Ltd to pull its share sale.
The regulator had undertaken a series of surveillance actions to ensure that the volatility in the Adani group companies’ share prices was contained. This will be a part of the brief to the finance minister on Wednesday, the sources said.