FM Sitharaman on SC verdict on Adani issue: Indian regulators are very seasoned

Finance Minister Nirmala Sitharaman on Saturday said that Indian regulators, such as the Securities and Exchange Board of India (SEBI), are very seasoned and are on top of the Adani Group matter. “India's regulators are very, very experienced. They are experts in their domain. So, they are seized of the matter (related to Adani-Hindenburg),” said Sitharaman.

Sitharaman was addressing the media after the Reserve Bank of India's central board of directors met for its customary post-Budget meeting. Sitharaman, Minister of State for Finance Bhagwat Karad, and Secretaries of Finance Ministry were also present in the meeting.

On Friday, the Supreme Court asked SEBI how to ensure the protection of Indian investors after the loss of "lakhs of crores" of investors' wealth after the Hindenburg report on Adani Group was made public. The apex court observed investors suffered losses after the US short seller's report on Adani Group and said investors need to be safeguarded. 

Solicitor General Tushar Mehta, appearing for SEBI, informed the apex court that the market regulator is "on top of the matter". The apex court asked the Solicitor General to come back on Monday with suggestions on what can be done to strengthen the existing equity investing regime.

Talking about the changes in the new tax regime, Sitharaman said that the new tax regime will reduce the tax compliance burden on the middle class, as the government has projected.

"We had said earlier that we will simplify and reduce income tax rates; that’s where it is. The new tax regime is to reduce the tax burden on the middle class, said the finance minister.

On being asked about adding additional exemptions in the new tax regime, Sitharamn said the government's idea is to give more money to the taxpayers. "The new tax regime along with standard deduction leaves more money with people. Don’t think the government needs to give inducements. A person is wise enough to know where to put his money; he’ll save, he’ll cover with insurance for himself and his family. I have not discouraged him (taxpayer) from doing anything or incentivised him to do anything in the new regime," added Sitharaman. 

Also watch: FM Nirmala Sitharaman Replies To The Debate on Union Budget in Lok Sabha

RBI governor Shaktikanta Das, who was also present at the media interaction, said the global economic outlook doesn’t look as grim as it was looking six months ago.  "The average oil barrel price is at $93. With our inflation projection of 5.3%, risks are evenly balanced. If oil and commodities prices go down, then it will work in our favour. The global economic outlook doesn’t look as grim. Now the talk is a softer recession. We have to wait and see how it plays out," he said.

Talking about repo rate revision, Das added that interest rates have just moved into positive territory. "Negative interest rates for a long period can create instability. The RBI's rate hikes are part of the process of maintaining price stability. It is up to banks to decide their rates. Market competition should decide deposit and lending rates."

He further said that the Balance of Payments situation is pretty manageable right now. "Service exports are doing extremely well, remittances have gone up by 27 per cent. The merchandise export target of $400 billion for this year is achievable," Das stressed.

Lastly, Sitharaman said that though the Budget 2023 didn't have anything on cryptos, there will be a focused discussion in G-20. "We are talking to all countries about whether a standard operating procedure can be created. Just one country can't regulate crypto on its own," she said on Saturday.