Don’t panic or get confused… SEBI advised investors to read the disclaimer.
SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch have issued a statement on the allegations by the US-based short-seller research firm Hindenburg. Market regulator SEBI has rejected the Hindenburg report and termed all allegations against SEBI as false. At the same time, so that there is no tension among investors over the report, it has advised them not to panic. There is no need for them to be misled by the Hindenburg Report. SEBI has appealed to investors to read such reports and do research before taking any decision. So that they do not suffer any kind of harm.
SEBI, in its statement issued before the market opened on Monday, said that Chairman Madhavi Puri Buch has been providing all necessary information from time to time. Even before becoming the Chairman, she had recused herself from matters related to potential conflicts of interest. In such a situation, investors need not get into any kind of confusion regarding the report and investors should read the disclaimer contained in the report filed by Hindenburg. In fact, Hindenburg also made a disclaimer in the report, which SEBI mentioned to investors.
23 investigations completed against Adani Group, nothing found
SEBI said that we have completed 23 out of 24 investigations after the allegations made against Adani Group last year. The allegations made in the latest report have not been proven. Now, the allegations made against Blackstone are also wrong. SEBI told investors that they need not worry about such reports. They should also read the disclaimer of the Hindenburg Report. SEBI has prepared a comprehensive framework on issues related to conflict of interest. In this, information about holding and transfer of securities has to be provided. The SEBI chief has followed all these rules.
More than 300 documents of 12 thousand pages were examined
Describing the investigations initiated following the earlier report, SEBI said the Supreme Court had also clarified the situation in its order. There is only one investigation underway, which will be concluded soon. We had issued over 100 summons. 1,100 letters and emails were also sent. Apart from this, domestic and foreign regulators and agencies were sought for help on this issue more than 100 times. Also, to investigate the allegations last time, over 300 documents of 12,000 pages were examined.
Advice to investors
In its statement, SEBI appealed to investors to remain calm. SEBI has asked investors to remain calm before reacting to such reports. Please exercise utmost caution. It has also asked investors to carefully read the disclaimer contained in the report. It added that readers should assume that Hindenburg Research may have short positions in the securities included in the report.
What is written in the disclaimer?
It is written in the Hindenburg Report disclaimer that this report is not securities advice. This is a research-based report. We advise each reader to do their own research. Use of Hindenburg Research research is at your own risk. Under no circumstances will Hindenburg Research or any of its associated parties be liable for any direct or indirect trading loss arising from the information contained in this report. You agree that you will conduct your own research and consult your own financial, legal and tax advisors before making any investment decision.
