Hindenburg Research is once again in the headlines and after Indian billionaire Gautam Adani, now the target is market regulator SEBI Chief Madhuri Puri Buch, against whom the short seller firm has made several serious allegations of collusion with the Adani Group. However, this time too the American firm is seen targeting Adani Group by placing a gun on SEBI’s shoulder. A new research report has claimed that the SEBI Chairman had a stake in the offshore funds that were used in the Adani money siphoning scandal. But meanwhile questions are being raised that these are reports published merely out of a feeling of revenge.
SEBI Chief also gave these indications
Is the new report from American short seller Hindenburg vindictive? We are not saying this, but this same question is arising in the minds of many market experts. There are reasons behind this, which are pointing in this direction. Along with this, SEBI Chief Madhabi Puri Buch, who became the target of Hindenburg, while giving his explanation also indicated that after the show cause notice issued by SEBI to Hindenburg earlier, this is just an attempt to defame his character. Let us understand it in five points…
first point
Amidst the uproar over the Hindenburg Report released on 24 January 2023 last year regarding manipulation in the shares of Adani Group companies and the debt on the group, 4 PILs were filed in the Supreme Court, in which Adani Group An appeal was made to issue orders for investigation against him. Regarding these petitions, the Supreme Court had ordered SEBI to investigate on March 2, 2023. After this, on August 25, 2023, SEBI gave a clean chit to Adani Group. This was a big blow for Hindenburg.
second point
Last year, in the report submitted by SEBI to the Supreme Court on August 25, 2023, the market regulator had said that the investigation of 22 out of 24 cases has been completed. The investigation of two cases is being delayed due to delay on the part of foreign organizations. Along with giving clean chit to Adani Group, SEBI had also made many allegations against Hindenburg. This also included violation of SEBI’s Code of Conduct for Research Analyst Regulations by Hindenburg and Nathan Anderson.
third point
While issuing a show cause notice to Hindenburg, SEBI had said that the report issued on Adani Group misled the investors and created a story through fabricated statements, due to which the share prices of the companies fell more and more. In the notice, the market regulator Said that the short seller firm had also violated local securities laws by issuing this report, because it was not even listed as a research firm in India.
Fourth point
Hindenburg’s nervousness was visible even before releasing his report on market regulator SEBI. When SEBI’s notice came, Hindenburg had called it an act to silence those cautioning investors. Not only this, through a post on its website on July 1, 2024, Hindenburg had also said that after discussion with sources in the Indian stock market, our understanding is that SEBI has given secret assistance to Adani Group. Report published in January 2023 Started immediately after it happened.
fifth point
Market experts are also terming Hindenburg’s new report as a feeling of revenge on this issue, because after all the ups and downs in the Adani-Hindenburg Case, now the shares of Adani Group companies have finally made a strong comeback. He believes that the Indian Stock Market is now gaining momentum and this could also be an attempt to destabilize it. Due to not being registered in India, Hindenburg cannot fight a legal battle here and due to this, SEBI has once again been targeted citing its relations with Adani Group.