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Adani-Hindenburg case: SEBI dealt a blow to the US firm, issued a show-cause notice

Sagar Patel

By Sagar Patel

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SEBI notice in the Adani-Hindenburg case

In the Adani-Hindenburg case, market regulator SEBI has dealt a major blow to US-based short-selling firm Hindenburg Research. A show-cause notice has been issued to Hindenburg Research over allegations of alleged violations in betting on Adani Group stocks.

Hindenburg Research had issued a report accusing Adani Group of stock price manipulation and financial irregularities. The US company informed the bourse that the Securities and Exchange Board of India (SEBI) has sent it a show-cause notice.

Show cause notice issued

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Hindenburg Research has described the ad as absurd and fabricated to serve a predetermined purpose. The company says it is an attempt to silence and intimidate those who expose corruption and fraud committed by India’s most powerful people. The US company said some questions have been resolved by the show cause notice.

What’s in SEBI’s notice?

In the notice received from SEBI, it is said that Hindenburg worked with dozens of companies to cause losses to Adani and thereby earn millions of dollars. The notice further said that our work at Adani was never justified from a financial or personal safety perspective, but it is the work we are most proud of so far.

Hindenburg’s response to the warning

Hindenburg said it received an email from SEBI on June 27 and was later served with a show-cause notice mentioning suspicions of violations of Indian regulations. The company said that till date Adani Group has not responded to the allegations made in our report. Instead, they responded by ignoring all the important issues we raised and then completely denied the allegations made in the media.

In January 2023, Hindenburg created a stir by publishing a report on the Adani Group. In this extensive report, evidence of serious fraud was revealed in the creation of cell companies by the brother of Adani Group Chairman Gautam Adani, Vinod Adani and his close associates. This report tells how billions of rupees were secretly sent in and out of Adani institutions through these institutions.

The report arrived in January 2023.

Hindenburg had published a report accusing the Adani Group of stock price manipulation and financial irregularities. At that time the group had denied all the allegations. It also obtained relief from the Supreme Court. The judges ruled that it (the group) need not face further investigation. However, following the publication of this report, shares of the Adani Group worth more than $150 billion were sold. Its effect was that Gautam Adani, who was listed as the second richest businessman in the world at the beginning of 2023, fell out of the top 20. The group subsequently largely compensated for this loss.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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