Government tension free due to stock market tsunami, Finance Secretary said - Adani's case is unnecessary

Finance Secretary TV Somanathan said on Friday that the sharp fall in shares of Adani Group is just a 'storm in a teacup' in view of the chaotic macro economic situation in the stock market.

Finance Secretary TV Somanathan said on Friday that the sharp fall in shares of Adani Group is just a 'storm in a teacup' in view of the chaotic macro economic situation in the stock market. 'A storm in a tea cup' is an idiom which means to show anger and concern over a matter which is not important. Somanathan, the most senior official of the Finance Ministry, said in an interview to PTI-language that India's public financial system is very strong and the upheaval in the stock market is not a matter of concern for the government. He said that independent regulators are there to take necessary steps in this regard.

Nothing to worry about for policyholders: Finance Secretary

When asked about the possible impact of fraud allegations on Adani group companies on banks and insurance companies, the Finance Secretary said that there is nothing to worry about the financial stability of depositors or policyholders or any shareholder of these companies . The share of any one company is not such that it can make any impact on the macro-economic level. He said that therefore there is nothing to worry from that point of view.

The valuation of Adani group companies has fallen by $100 billion in the last ten days. Shares of Adani Enterprises, the group's top company, have tumbled 70 per cent from their high in December.

No issue from macro-economic point of view: Finance Secretary

Somanathan also ruled out the possibility of a sharp fall in Adani Group's shares to have any impact on the revised estimates of disinvestment collection. He said that this is a case running on one side. Those interested in the stock market and investment are keen on it. He further said that but from the macro-economic point of view this is not an issue. In his opinion it is a complete non-issue. From the macro-economic point of view, it is just a storm in a tea cup.

He said that the volatility in the stock market prices is nothing to worry about and this phenomenon is seen in all the stock markets.

In a report by Hindenburg Research, there has been continuous selling since the Adani Group was accused of fraud to increase the prices of shares. During this, Adani Enterprises has suffered the most.