Hindenburg Research Securities and Exchange Board of India(SEBI) charged with failure to report fraud Short-selling reports But adani group The company took this step after receiving a notice from the regulator in June, early last year.
The US shortseller had received a notice from India’s market regulator Sebi in June, saying the company’s reports on the Adani Group contained certain misrepresentations and incorrect statements that are intended to mislead readers, it said in a statement published on its website on Monday.
Hindenburg publishes a report on the Ports to Power group founded by the billionaire Gautam Adani In January 2023, it was called “the biggest scandal in corporate history”, alleging widespread corporate malfeasance ranging from stock price manipulation to related party transactions.
The Adani Group has repeatedly denied these allegations, which at one point led to a drop in the market value of its listed companies by more than $150 billion. Hindenburg said the company failed to address the issues raised in its report.
The shortseller also said Sebi “appears more interested in pursuing those who expose such practices” while its investigation into the group has hit a wall.
“SEBI has neglected its responsibility and appears to be more interested in protecting its victims, investors, than in protecting the fraudsters,” Hindenburg said in the statement.
SEBI did not immediately respond to Bloomberg's request for comment. A representative for the Adani Group also did not immediately comment.
In the wake of Hindenburg's Adani report, India's Supreme Court ordered SEBI to investigate the allegations and set up an expert panel to probe regulatory lapses. In January this year, the apex court asked SEBI to complete its probe within three months and said there was no need for further investigation.
The US shortseller had received a notice from India’s market regulator Sebi in June, saying the company’s reports on the Adani Group contained certain misrepresentations and incorrect statements that are intended to mislead readers, it said in a statement published on its website on Monday.
Hindenburg publishes a report on the Ports to Power group founded by the billionaire Gautam Adani In January 2023, it was called “the biggest scandal in corporate history”, alleging widespread corporate malfeasance ranging from stock price manipulation to related party transactions.
The Adani Group has repeatedly denied these allegations, which at one point led to a drop in the market value of its listed companies by more than $150 billion. Hindenburg said the company failed to address the issues raised in its report.
The shortseller also said Sebi “appears more interested in pursuing those who expose such practices” while its investigation into the group has hit a wall.
“SEBI has neglected its responsibility and appears to be more interested in protecting its victims, investors, than in protecting the fraudsters,” Hindenburg said in the statement.
SEBI did not immediately respond to Bloomberg's request for comment. A representative for the Adani Group also did not immediately comment.
In the wake of Hindenburg's Adani report, India's Supreme Court ordered SEBI to investigate the allegations and set up an expert panel to probe regulatory lapses. In January this year, the apex court asked SEBI to complete its probe within three months and said there was no need for further investigation.
