Amid Hindenburg-Adani Row, Jokowi Warns Indonesian Financial Regulators To Tighten Strings

Indonesian President Joko Widodo, on Monday, called on the country’s financial regulator to increase oversight of the capital markets after the recent crisis at the Adani Group in India.

What Happened: While speaking at the annual financial services authority meeting, Widodo said that India's depreciating rupee and capital outflows after the recent report by U.S. short-seller Hindenburg Research led to a meltdown in stock market values of Adani Group companies, reported Reuters.

Widodo warned about the negative impact of stock manipulation to prevent these things from happening in Jakarta.

Related Link In Benzinga India: Adani Group May Not Do Everything Straight But Wrong To Describe It As ‘Biggest Con’ In History, Says Ashwath Damodaran

“When it slips in pump and dump, things happening just like in India, please be careful,” Widodo added.

Adani Vs. Hindenburg: On Jan. 24, Hindenburg Research accused Adani Group of engaging in a “brazen stock manipulation and accounting fraud scheme over the course of decades.”

The Adani Group responded to allegations by Hindenburg Research in over 400-page response and called it a calculated attack on India. 

The publicly-listed companies of the conglomerate run by India’s Gautam Adani saw tough past weeks at the bourses amid a short seller's report. Following the meltdown, Adani Group called off its fully-subscribed FPO and the chairman Adani said that the board felt it would "not be morally incorrect" to proceed with the FPO.

Meanwhile, the shares of Adani Group of companies were trading mixed on Monday after British multinational bank Standard Chartered reportedly joined Citigroup and Credit Suisse to stop accepting the company's stocks as collateral for margin loans.

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