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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The writers of the article that triggered Tuesday’s fall in share prices got the wrong data, but the BSE and the market regulator need to answer why.
Editor's note: On Tuesday, a sharp fall in share prices wiped out Rs 50,000 crore in market capitalization across publicly traded Adani group companies. It was the biggest single-day loss in a month and came at a time when the worst seemed over for the group, following the publication of American short-seller Hindenburg Research’s report on issues with the conglomerate in January. In fact, the group’s shares seemed poised for a recovery after another US-based investment firm GQG Partners invested $1.87 billion earlier this month, buying shares of several firms. The fall was triggered by an article in The Ken initially titled “The Adani Group wants you to believe it has repaid all its loans against promoters’ shares. Here’s why you shouldn’t”. The article was written by two chartered accountants, Sudarshan Bhandari and Nimish Maheshwari, who publish market analysis on Twitter and YouTube as Beat The Street. Their article said that the Adani group’s claim to have paid off $2.1 billion to release shares pledged didn’t appear correct. The writers pointed out that pledges weren’t discharged, as per regulatory filings, after the …
As India’s largest stock exchange heads to the public markets, it may need to rethink its excessive reliance on transaction revenue.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
While the regulator’s interim order alleges massive irregularities, the long arc of unfinished probes, hearings and appeals makes closure distant.
