RBI asks banks for details of exposure to Adani Group

The Reserve Bank of India has sought details from local banks about their exposure to Adani Group companies, following a $100 billion wipeout in the cumulative market valuation of the conglomerate since last week. Government and banking sources, quoted in a report by news agency Reuters, have confirmed the development. The central bank has not given an official statement on the matter yet. Shares of Adani Group companies continued their downward spiral on the stock market on Feb. 02, even as the conglomerate’s billionaire owner, Gautam Adani released a video statement to calm investors. Meanwhile, the Securities and Exchange Board of India (Sebi) has reportedly started examining the recent crash in Adani Group stocks. The increased scrutiny on the group by regulators in addition to the Hindenburg report could prove to be a double whammy for the company in the near-term.