: Thursday, January 16, 2025 3:19 PM
New Delhi . Infamous short seller firm Hindenburg Research is on the radar of Indian regulators, such as the Securities and Exchange Board of India (SEBI), over its report on Adani Group.
The Supreme Court has also rejected the allegations made in the report on Adani Group.
At the same time, Nat Anderson, founder of the short seller firm, has announced its closure in an open letter on Thursday.
The Adani Group has always strongly rejected Hindenburg Research’s allegations, saying it was a “malicious, mischievous and manipulative selection of publicly available information”, leading to “disgrace to individuals in disregard of facts and law.” To reach a pre-determined conclusion for profiteering.”
According to the group, “The allegations against Hindenburg, the disgraced short-seller firm that is under investigation for violations of Indian securities laws, are nothing more than misleading statements made by a desperate institution.”
SEBI had last year issued show cause notices to the entities of Hindenburg Research, Nate Anderson and Mauritius-based foreign portfolio investor Mark Kingdon for violation of trading rules in Adani Enterprises Ltd shares, as a result of which Hindenburg had come out with the new report.
The regulator alleged that Hindenburg and Anderson violated rules related to fraudulent and unfair trading practices and the code of conduct for research analysts.
In the show cause notice, Sebi said that short-selling activity was seen in the futures of Adani Enterprises before the release of the report and after the report the stock had fallen by 59 per cent between January 24, 2023 and February 22, 2023.
SEBI’s investigation revealed that K-India Opportunities Fund -Class F had opened a trading account and started trading in Adani Enterprises shares even before the release of the report. Subsequently, FPIs squared off their positions in February and made a profit of $22.25 million or Rs 183.24 crore.
Hindenburg continued to defend its January 2023 report and Adani Group denied the allegations made by the short seller.
Despite continuous attacks by Hindenburg Research and other US entities for some time now, the market cap of Adani Group has increased to about Rs 12.80 lakh crore.
Every attack made the group stronger. In recent times, there have been many positive updates regarding Adani Group companies, which has increased the confidence of investors.
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Web Title-Hindenburg facing investigation by Indian regulators over report on Adani Group