'FPOs come and go,' said Sitharaman of the Adani controversy; 'Perception of India remains intact'

Concerning the Adani controversy, Nirmala Sitharaman said that the FPO withdrawal would have no effect on public image of India. "Regulators are independent of the government and are permitted to do what is appropriate to ensure the market is effectively regulated," the FM said.

Finance Minister Nirmala Sitharaman stated on Saturday that the foreign currency reserve has increased by $8 billion in the previous two days due to the Adani situation. "FPOs arrive and go. These oscillations occur in all markets. However, the fact that we have had 8 billion visitors in the past few days demonstrates that the perception of India and its underlying strength is intact "In response to the Adani FPO withdrawal, the finance minister said. Read More | Inside the 19-hour Adani saga that resulted in the cancellation of a $2.5 billion FPO

Sitharaman said on Friday that the market is well-regulated and that authorities would do their jobs. "The RBI issued a statement. Prior to that, banks and LIC disclosed their involvement. Regulators are independent of the government and are permitted to do what is necessary to ensure that the market is effectively regulated "Sitharaman said.

"How many times have the FPOs not withdrawn from this nation, and how many times has India's image suffered as a result, and how many times have the FPOs not returned?" stated the finance minister.

Adani Enterprise withdrew a 20,000 crore FPO to shield investors from possible losses after the Hindenburg investigation, which accused the Adani Group of stock manipulation and fraud.

As the Adani case became a political flashpoint, with the opposition demanding a court-monitored probe or a joint parliamentary committee investigation into the allegations, India's finance minister said on Friday that the country's financial sector is highly regulated and that one incident will not be indicative.

According to Finance Secretary TV Somanathan, the situation is a "storm in a tea cup" from a macroeconomic standpoint. On Saturday, he said that he stands by his remarks, which was criticised by opposition party leaders, since he made the remark in terms of macroeconomic data.