Warning bells

Context:

• In the recent report, the scam allegations on Adani group has cited concerns for investors and questioned over the regulatory environment in India on companies stock manipulation activities.

Key points of the report:

• Manipulating stocks: According to the U.S.-based short sellers report, the group is practicing stock manipulation and questionable accounting practices’.
• Dragged down the stocks of SBI and LIC: These activities have dragged down banking shares led by the State Bank of India and even the state-owned Life Insurance Corporation of India (LIC) appreciably.
• Threat to investors of the Company: The report highlighted that loss of stocks has triggered investor concern about broader financial sector stability in the market.