- By Radha Basnet
- Sun, 11 Aug 2024 09:39 PM (IST)
- Source:JND
Adani-Hindenburg Row: India's capital markets regulator, the Securities and Exchange Board of India (SEBI), has responded to the recent report by US-based short seller Hindenburg Research regarding the Adani Group. In its first statement, SEBI said that it has thoroughly investigated all the allegations made against the Adani group.
SEBI Chairperson Madhabi Buch has made relevant disclosures and recused herself from matters involving potential conflicts of interest, the regulator stated. India's markets regulator also confirmed that it has duly investigated the allegations made by Hindenburg, and the last of its 26 investigations is nearing completion.
Meanwhile, the SEBI advised investors to stay calm and conduct thorough research before reacting to the latest Hindenburg Research report, noting that it includes a disclaimer that the US short-seller may hold short positions in the securities covered.
"Investors should remain calm and exercise due diligence before reacting to such reports. Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report,” SEBI said in a statement.
Earlier, Chairperson Buch and her husband Dhaval had dismissed the allegations as baseless, accusing Hindenburg of attacking the credibility of the capital markets regulator and attempting a character assassination of the SEBI Chairperson.
The Hindenburg report, released on August 10, accused SEBI of not taking action against the Adani Group despite allegations of financial misconduct. It also criticized SEBI for issuing a show-cause notice to Hindenburg on June 27, 2024, for alleged violations of Indian securities laws. Additionally, the report claimed that recent amendments to SEBI (REIT) Regulations 2014 were made to favor a particular multinational financial conglomerate.