Indonesian President Joko Widodoon Monday called on the country’s financial regulator to step up oversight of capital markets thereafter the recent crisis in the Adani group in India.

What happened: Speaking at the Financial Services Authority’s annual meeting, Widodo said that the Indian rupee is depreciating and capital is outflowing following the US short seller’s latest report Hindenburg research led to a collapse in the stock market values ​​of Adani Group companiesreported Reuters.

Widodo warned of the negative effects stock manipulation to prevent these things from happening jakarta.

Related link in Benzinga India: The Adani group may not be doing everything right, but they may be wrong in calling it the “biggest hoax” in history, says Ashwath Damodaran

“If it slips into pump and dump, things happen like in India, please be careful,” Widodo added.

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

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

The listed companies of the India’s-led conglomerate Gautam Adani seen tough past few weeks in stock markets amid short seller report. After the meltdown, Adani Group canceled its fully subscribed FPO and Chairman Adani said that’s how the board sees it “not to be morally incorrect” to continue with the FPO.

Meanwhile, shares in the Adani group of companies traded mixed after the British multinational bank on Monday Standard Chartered reportedly joined Citigroup And CreditSuisse to stop Accepting the company’s stock as collateral for margin loans.

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