New Delhi:
The Securities and Exchange Board of India (SEBI) has issued show cause notices to American short seller Hindenburg Research, Nathan Anderson and Mauritius-based FPI Mark Kingdon for misleading them about Adani Group companies. SEBI has issued this notice for violation of trading rules in shares of Adani Enterprises (Adani Enterprises Share Price).
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What are the allegations made by SEBI?
Indian markets regulator Sebi has alleged that Hindenburg and Andersen violated SEBI’s Code of Conduct for Research Analyst Regulations, Prevention of Fraud and Unfair Trade Practices Regulations under the SEBI Act.
At the same time, FPI Kingdon has been accused of violating SEBI’s Code of Conduct for FPI Regulation besides Prevention of Fraud and Unfair Trade Practices Regulations.
What did SEBI find in its investigation?
Market regulator Sebi said, ‘Hindenburg and FPI issued a misleading disclaimer that the report was only for valuation of securities traded outside India, when it clearly related to companies listed in India.’
On the other hand, American short-seller Hindenburg has continued to defend its report released in January 2023. Sebi will now take further action after getting their replies from Hindenburg, Anderson and Kingdon.
In January, 2024, Adani Group got SC approval on a clean chit
Earlier, after several months of inquiry by the expert committee and SEBI on the Hindenburg report, the Supreme Court had also allowed the clean chit given to the Adani group in January this year. The Supreme Court had so far said that SEBI’s investigation has been conducted as per the rules, and there is absolutely no flaw in it, so there is no justification left in getting the matter investigated by the SIT.
The SC said there was no reason to hand over the probe to any other agency.
The Supreme Court also refused to transfer the probe to any central investigating agency and said that now the petitioners have to produce concrete evidence that SEBI and the expert committee conducted the probe in a biased manner. In this decision, the Supreme Court ordered the central government and SEBI to act on the recommendations of the expert committee to strengthen the interests of Indian investors.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani group company.)