‘Attempt to silence, intimidate’: Hindenburg on SEBI’s ‘show cause notice’ in Adani case
The US-based firm said that Kotak Bank, which it claims created and oversaw the offshore fund structure used to bet against Adani, is missing from the notice.
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United States-based firm Hindenburg Research on Monday said that it had received a show cause notice from the Securities and Exchange Board of India outlining alleged violations in placing bets on stocks of Adani Group.
The American short-seller said that the 46-page show cause notice by the Indian markets regulator was “concocted to serve a pre-ordained purpose: an attempt to silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India”.
“Our understanding from discussions with sources in the Indian market is that SEBI’s surreptitious aid of Adani commenced almost immediately post-publication of our January 2023 report,” said Hindenburg in its response to the notice.
On January 24, 2023, Hindenburg published a report alleging that the Adani Group was involved in accounting fraud and money laundering.
The firm alleged that the conglomerate was pulling off the “largest con in corporate history”. The Adani Group rejected these allegations, but the report hurt the stock prices of its listed companies and had wiped out more than $100 billion in investors’ money.
In March 2023, the Supreme Court ordered the Securities and Exchange Board of India to conduct an inquiry into the matter.
On Monday, Hindenburg alleged that following the publication of its January 2023 report, it was told that “SEBI pressured brokers behind-the-scenes to close short positions in...
