US short-seller Hindenburg Research has accused billionaire Gautam Adani and his network of firms of financial fraud and stock manipulation, but India’s stock market authority has rejected these claims. After Hindenburg Research released shocking reports in 2023 that caused the group to lose over $100 billion in market value in a matter of days, the Securities and Exchange Board of India (Sebi) started looking into the conglomerate.
Sebi rejected the accusations against Adani’s businesses on Thursday, stating that the investigation had found no evidence of a regulatory standard infringement. Sebi has reaffirmed what we have always maintained, that the Hindenburg claims were baseless,” Mr Adani wrote on X.
Hindenburg Research, which specialises in “short-selling betting against a company’s share price with the hope that it will decline, published a 106-page report on January 24, 2023, accusing the Adani Group of stock manipulation, accounting irregularities, and inflating share prices through offshore shell companies.
On Thursday, Sebi rejected some of these claims, stating that they did not constitute market manipulation and that, in accordance with its regulations, there were no transactions between Adani’s companies and connected parties, so they were not required to be disclosed to investors.
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