Adani-Hindenburg Case: Hindenburg Research Firm Questions SEBI For its Role in the Matter, Know Details

Adani-Hindenburg Case: Market regulator SEBI issued a show-cause notice to the American short-selling firm Hindenburg Research on the allegations against Adani Group. In response, Hindenburg raised questions on the role of SEBI through a blog post, indicated as an attempt to intimidate and threaten. It has been said that instead of protecting investors from frauds, SEBI is trying to save the defrauders. On January 24, 2023, an American short-selling firm Hindenburg Research issued a report on the Adani Group in which, allegations of money laundering, stock manipulation, and accounting fraud were placed on Gautam Adani-led Group. 

Hindenburg-SEBI Tussle

The report witnessed a drop in Adani Group’s stocks. However, after investigating all the allegations of Hindenburg, SEBI gave a clean-chit to the Adani Group. Last Thursday, SEBI issued a notice to Hindenburg Research through an email. In response to the 46-page notice, Hindenburg Research published a post on its blog on the same day. The Hindenburg’s blog post mentioned that the 106 pages report had more than 720 citations, and there was evidence of Adani Group’s stock manipulation and accounting fraud. In this report, evidence was also issued about offshore entities controlled by Gautam Adani’s brother Vinod Adani and many other close associates, through which billions of dollars were spent.