SEBI has sent a 46-page show cause notice to Hindenburg Research, the American short seller company that shook Adani’s empire. Regarding this, the firm put SEBI in the dock and accused it of protecting the fraudsters. Let us tell you that in January 2023, Hindenburg had made allegations ranging from stock manipulation to money laundering against Adani Group. This notice has been given regarding this only.
Hindenburg revealed that SEBI has sent him a letter reveling in suspected violations over his short bet against Adani Group last year and revealed that it was “barely breaking even” on its trades. Can come up”.
Hindenburg also said that Kotak Bank, an Indian firm, created and supervised an offshore fund structure that its “investor partners” used to bet against the group, according to Reuters. This revealed new details of the trades, which have surprised investors.
The firm said that following our report, we were told that SEBI behind the scenes pressured brokers to close short positions in Adani shares. This created buying pressure and helped the shares of Adani Group.
The short-seller firm also said it received $4.1 million in gross revenue from that investor relationship through gains related to Adani shorts and only $31,000 through its short position of Adani’s US bonds. It did not disclose the name of the investor.
Show cause notice is an attempt to intimidate
Calling SEBI’s show cause notice an attempt to intimidate, Hindenburg wrote that the regulator has made “vague allegations” that Hindenburg’s report contains false statements designed to mislead readers. Do you know? Only 5% of Indians know how to invest their money.
“In our view, SEBI has abdicated its responsibility, it appears to be protecting the fraudsters,” Hindenburg said. Last year, after the Supreme Court had asked the regulator to investigate the allegations, SEBI “concurred with many of the key findings of our report. Later, SEBI said it was unable to investigate further.”
Adani’s empire was shaken after the report
The disclosure of the SEBI notice brings a new twist to the story that started last year, when Nathan Anderson-founded Hindenburg accused Adani of improper dealings. After the report, Adani Group’s market cap suffered a loss of up to $150 billion. However, Adani Group has now recovered from that shock.
Hindenburg will file RTI
Hindenburg Research said it will file a RTI application seeking names of SEBI employees who were working on the Adani and Hindenburg cases, Business Standard reported. Also, details of meetings and calls between SEBI and Adani and its various representatives should also be sought.
