look news india
US short-seller firm Hindenburg Research criticised Indian market regulator SEBI in a statement on Tuesday, June 2. Hindenburg said SEBA had failed to take action on alleged fraud cases against the Adani Group in a report last year. It also pointed out that it had made a profit of $4 million by shorting Adani Group shares throughout the case. However, Adani Group shares fell sharply after the Hindenburg report and at one point its valuation fell to $150 billion.
In a statement posted on its website, Hindenburg said it appears that “the Securities and Exchange Board of India (SEBI) is more reluctant to hold people to account when exposed, in cases like this.” On the other hand, investigations against billionaire Gautam Adani’s empire have virtually stopped.
Hindenburg was sent a show-cause notice by Sebi on June 27, saying its January 2023 report against the Adani Group contained certain false statements and incorrect facts that were intended to mislead readers.
Hindenburg said that his Adani Group shares were shorted by one of his 'investor partners', resulting in a profit of $4.1 million. However, he did not disclose the name of his 'investor partner' in the statement. Hindenburg said he also shorted Adani's US-listed bonds, resulting in a marginal profit of $31,000.
Let us tell you that Hindenburg submitted a report on Adani Group on 24 January 2023. The report accused the Adani Group of massive corporate misdeeds and called it “the biggest scam in corporate history”. However, the Adani Group repeatedly denied all the allegations of Hindenburg. However, after this report, the market valuation of their companies fell by more than $150 billion. Adani Group has now recovered this loss in shares.
“SEBI has abdicated its responsibility and appears to be putting more effort into protecting fraudsters than protecting their victimized investors,” Hindenburg said in the statement.