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Adani Group Chairman Gautam Adani
American firm Hindenburg Research has received a 46-page show cause notice from India’s market regulator SEBI. In January last year, Hindenburg Research had made allegations ranging from stock manipulation to money laundering against Adani Group, due to which this notice has been given.
The research firm said in a blog post published on July 1 that the notice states that it has violated the rules. SEBI has alleged that Hindenburg’s report contains certain false statements intended to mislead readers, the company said.
SEBI is trying to protect the fraudsters
- Hindenburg said, “In our view, SEBI has neglected its responsibility, it appears to be putting more effort into protecting the fraudsters rather than protecting investors from the fraudsters.”
- Hindenburg said – Our understanding from discussions with Indian market sources is that the Securities Exchange Board of India’s covert assistance to Adani began almost immediately after the publication of our January 2023 report.
- 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 Adani Group shares at a crucial time.
- Hindenburg Research said in its blog – When pressure was put on the public and the Supreme Court to investigate this matter, SEBI appeared to be faltering. Initially, this appeared to agree with many of the key findings of our report.
- Giving an example of this, the research firm said – As per Supreme Court case records: SEBI is unable to satisfy itself that the funders of FPIs are not linked to Adani. SEBI later claimed to be unable to investigate further. Did.
Adani Group was accused of money laundering, share manipulation etc.
On January 24, Hindenburg Research had published a report regarding Adani Group. In the report, allegations ranging from money laundering to share manipulation were made against the group. After the report, there was a huge fall in the shares of the group. However, there was recovery later.
Adani Enterprises’ shares fell 59% after the report.
On January 24, 2023 (January 25 as per Indian time), the share price of Adani Enterprises, the flagship company of Adani Group, was Rs 3442. On January 25, it fell 1.54% and closed at Rs 3388. On January 27, the share price had fallen by 18% to Rs 2761. By February 22, it had fallen 59% to Rs 1404.
