New Delhi. India’s market regulator SEBI (Securities and Exchange Board of India) has issued a show cause notice to US short seller company Hindenburg Research. Hindenburg released its report last year in 2023 making serious financial allegations against India’s Adani Group. After the release of this report, there was a sudden fall in the shares of Adani Group. In this case, SEBI has sent a 46-page notice to Hindenburg and sought a reply. SEBI said in the notice that Hindenburg made false allegations in its report without any evidence.
On the other hand, Hindenburg, angry with SEBI’s notice, instead of responding to the notice, blamed SEBI itself. Hindenburg said that SEBI is protecting the fraudsters. At the same time, Hindenburg also cornered the Indian bank Kotak Mahindra in this matter and said that Kotak Bank created an offshore fund structure. This offshore fund structure was used by its investor partner to trade in the shares of Adani Group. Hindenburg said that it will file an RTI to seek the names of those SEBI employees who worked on both Adani and Hindenburg cases.
It is worth noting that in the recent annual meeting of Adani Group on 24 June, the company’s chairman Gautam Adani also mentioned the Hindenburg report and the subsequent huge fall in the company’s shares. Gautam Adani said that the ability to stand strong in adverse circumstances is the real measure of success and we have done it. Adani Group has emerged stronger than ever while facing this bad phase. This proves that no challenge can weaken the foundation of Adani Group.