India’s Securities and Exchange Board (Sebi) has concluded its investigation into allegations of stock manipulation and financial fraud against billionaire Gautam Adani and his conglomerate, made by Hindenburg Research, a US short-seller. The inquiry commenced in 2023 after Hindenburg released a detailed report claiming that the Adani Group was involved in accounting irregularities, stock manipulation, and the use of offshore shell companies to artificially inflate share prices. The report notably resulted in a loss exceeding $100 billion in market value for the group.
On Thursday, Sebi announced that no violations of regulatory norms were found during its investigation. It clarified that there were no transactions requiring disclosure between Adani’s companies and related parties, negating the claims of market manipulation. Sebi stated that there were no indications of funds being misappropriated or investors incurring losses, as loans taken by the Adani Group were repaid before the investigation began. The order emphasized that the transactions in question did not meet the criteria for classification as manipulative or fraudulent.
The allegations from Hindenburg Research led to considerable political discourse in India, with opposition parties, particularly the Congress party, criticizing Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) for its inaction against the Adani Group. Gautam Adani, recognized as one of Asia’s wealthiest individuals, is reported to have close ties with Modi, prompting accusations from political opponents regarding potential benefits from these connections.
Additionally, the founder of Hindenburg Research, Nate Anderson, recently announced the disbandment of the company after nearly eight years of operation. He did not provide specific reasons but mentioned a desire to prioritize time with family and friends moving forward.
Source: https://www.bbc.com/news/articles/c0m4l14vdplo?at_medium=RSS&at_campaign=rss