The party also said that the “Indian equity market has so far enjoyed a valuation premium among emerging markets on account of well regulated markets and professionally-managed companies, but any lapses could risk destabilizing it.
Congress general secretary-in-charge communications, Jairam Ramesh pointed out that recent data shows the unique registered investor base of the National Stock Exchange of India (NSE) with unique PANs has surpassed 10 crore.
“Regulatory failures and conflicts of interest may be brazened out in the short term but these can cause long-term damage to sentiment and confidence. A young and growing investor population surely deserves better, Ramesh said in a post on X, formerly known as Twitter.
He also said that the immediate implication is that integrity and transparency in financial markets are becoming increasingly important to a large and growing number of Indians, especially the youth. Ramesh, referenced data from the NSE and said that the average age of investors is 32, with a significant portion (40%) being under 30 years old.
He said that the proper functioning of financial markets on the assumption that regulators will regulate fairly and companies will play by the rules, he said.
“But when it is revealed that the Sebi Chairperson has had a serious conflict of interest, and that too regarding investigations into alleged money laundering and round tripping by the Adani Group, this becomes a serious matter involving the faith of crores of investors,” Ramesh said.
The Congress leader said that while regulatory failures and conflicts of interest may be overlooked in the short term, they can cause lasting damage to sentiment and confidence.
He further alleged that the market fluctuations triggered by the outcome of the vote counting on June 4, 2024, were a result of Narendra Modi’s actions, which also shook faith in the market.
“Faith in markets has also been shaken by the Modi-made market volatility that followed the counting of votes on 4 June 2024. On 13 May, the self-styled Chanakya told investors in an interview…: ‘I suggest that you buy (shares) before June 4. It will shoot up’. A few days later, the non-biological PM repeated…that the stock market would break records on June 4,” Ramesh said in the post on X.
“Any erosion of these pillars by regulators who are under a cloud or a Sarvagyaani know-it-all PM who considers himself an expert on everything (recall the demonetisation disaster) risks destabilising Indian markets,” the Congress leader added.
“The demand for a Joint Parliamentary Committee (JPC) investigation into the Adani Mega Scam goes far beyond the revelations made by Hindenburg Research’s reports. Only a JPC can investigate and unravel the true and full extent of this Modani mega-scam,” Jairam Ramesh had earlier said in a post on X, last week.
Ramesh’s comments were made in the wake of recent accusations by Hindenburg Research, a short-selling firm based in the United States. The company targeted Madhabi Buch, the chairperson of the Securities and Exchange Board of India (Sebi), claiming that she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.
Buch and her husband have denied these allegations and the Adani Group has also dismissed the latest allegations made by Hindenburg Research, characterizing them as malicious and emphasized that it has no business ties with either the Sebi chairperson or her husband.
(With inputs from PTI)
