“Risks Destabilising Indian Markets”: Jairam Ramesh Attacks PM Modi

Congress general secretary in charge of Communications, Jairam Ramesh, has criticised Prime Minister Narendra Modi, warning that the government’s actions risk destabilising Indian financial markets. In his remarks, Ramesh expressed concern over the growing number of young investors in India and the implications of recent developments involving market regulation.

Ramesh noted that the National Stock Exchange of India (NSE) now has over 10 crore unique registered investors, with the median age being 32 and 40% of investors below 30 years of age. He highlighted that the integrity and transparency of financial markets are crucial for this large and youthful investor base. He pointed out that faith in the markets could be seriously undermined due to regulatory failures and conflicts of interest, particularly in light of the recent controversy surrounding SEBI Chairperson Madhabi Puri Buch, who has been accused of having a conflict of interest regarding investigations into the Adani Group.

Ramesh further criticised the Prime Minister for his comments in an interview with Adani-owned NDTV, where Modi had predicted a stock market surge on 4 June 2024. Ramesh suggested that such statements contributed to market volatility, shaking investor confidence. He warned that any erosion of the pillars that have supported India’s equity markets—well-regulated markets and professionally managed companies—could destabilise the financial landscape.

In response to the allegations against SEBI and the Adani Group, the Congress party has earlier demanded a parliamentary probe and emphasised the need to eliminate conflicts of interest within SEBI. Ramesh has then reiterated the party’s stance, stating that the demand for a Joint Parliamentary Committee (JPC) investigation into the Adani Mega Scam is necessary, as the irregularities and wrongdoings involving the Adani Group affect multiple aspects of the political economy.