Hindenburg-Adani Case
In short:
All of the charges brought against Adani Group by US short seller Hindenburg were thoroughly investigated by SEBI, confirming a thorough analysis of the claims.
Hindenburg-Adani Case
SEBI explained – ‘Adani case was duly investigated‘.
The claims made by US short-seller Hindenburg regarding the participation of Sebi Chairperson Madhabi Puri Buch and her husband in the “Adani money diverting scandal” on Aug-10’2024 have been rejected by Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch and her husband as an effort to damage their reputation.
The charges have been denied by them as false and inaccurate, highlighting the transparency of their financial records. The pair strongly disputes the charges and says that the wrong hints in the Hindenburg Report have not damaged their integrity.
In Details
In response to the first of Hindenburg Research’s allegations, SEBI stated that Chairperson Madhavi Buch stepped down from conflict concerns and made appropriate disclosures.
After conducting an inquiry into all of the claims made by the Adani Group in the Hindenburg report, SEBI took appropriate measures. Investors were warned by SEBI to remain cool and respond to these reports carefully, taking note of any disclaimers.
SEBI stays silent on issues while conducting investigations. Investors need to read Hindenburg’s research carefully and take safeguards before acting. In response to allegations, SEBI highlighted the significance of maintaining calm and proceeding carefully, making sure that all necessary preparation is done before acting.
SEBI highlighted the supreme court’s decision
With one case ending in March 2024 and the final one almost concluded that SEBI explained the top court acknowledged the conclusion of investigations in 22 out of 24 cases against the Adani Group.
A negative study published in January 2023 by Hindenburg Research, which accused the Adani Group of influencing stock prices, served as a catalyst for the investigations.
“The Supreme Court ordered SEBI to resolve the final two cases in three months rather than sending the case to the SIT in January 2024” – This comes after the supreme court made its first remarks about the state of SEBI’s investigations on January 3, 2024.
A notice of show cause was sent to Hindenburg
SEBI issued a show cause notice to Hindenburg on June 27 for violating securities laws, which the latter has published on its website. Ongoing action is being taken.
What the Hindenburg report claimed to say
Following the release of the Hindenburg report, the names of SEBI Chief Madhavi Buch and her spouse Dhawal Buch have been linked to the suspected Adani fraud.
The pair reportedly possessed investments in offshore funds that were used for money laundering.
The persons in question were allegedly handled by Vinod Adani, the brother of Gautam Adani, the head of the Adani Group. Madhavi Buch was accused with giving her spouse access to her shares prior to her full-time SEBI membership in 2015. From April 2017 until March 2022, she ruled over SEBI as its president and member.
The timeline of the Adani Hindenburg case’s events | Events Chronology
- January 2023: A research by Hindenburg Research claims that the Adani Group of Companies manipulated its share prices.
- February 2023: A Supreme Court petition is filed asking for guidance on how to form a committee to look into claims while being overseen by a retired SC judge.
- March 2023: The SC requests that SEBI look into claims that the Adani group has been influencing stock prices and that there have been any discrepancies in regulatory filings during a two-month period.
In addition, the Supreme Court of India forms a commission to investigate the safeguarding of Indian investors following to the US short seller’s report wiping over USD 140 billion off the market worth of the corporation.
- May 2023: Report submitted by expert committee designated by the court.
- May 2023: The Supreme Court gives SEBI till August 14, 2023, to turn in a report on its investigation.
- November 2023: The Supreme Court has delayed its decision on many appeals related to the Adani-Hindenburg dispute on claims of stock price manipulation.
- January 2024: The Supreme Court orders the market regulator SEBI to finish its inquiry into two outstanding cases in three months and refuses to hand over the investigation into the allegations of stock price manipulation to a special investigative team.
- June 2024: Hindenburg Research receives a show-cause notice from SEBI for “intentionally making headlines and distorting certain facts”
Sources –
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