Hindenburg Alleges SEBI Intimidation
ECONOMY & POLICY

Hindenburg Alleges SEBI Intimidation

U.S.-based short-seller Hindenburg Research announced that India's securities regulator, SEBI, had sent a letter outlining suspected violations over its short bet against Adani Group last year. Hindenburg disclosed that it may "barely come out above breakeven" on its trade.

In a detailed statement, Hindenburg revealed that Kotak Bank, an Indian firm, created and managed an offshore fund structure for its "investor partner" to bet against the Adani conglomerate. This provided new insights into the trades that had puzzled many investors. The short-seller reported making $4.1 million in gross revenue from gains related to Adani shorts and just $31,000 from its short position on Adani's U.S. bonds.

Hindenburg characterized SEBI's "show cause" notice as an attempt at intimidation, stating that the regulator accused Hindenburg's report of containing misrepresentations and inaccuracies intended to mislead readers. "SEBI has neglected its responsibility, seemingly doing more to protect those perpetrating fraud than the investors being victimized by it," Hindenburg said.

SEBI has also been investigating Adani, with India's top court granting it until August 14 to complete the probe. This disclosure adds a new twist to the saga that began last year when Hindenburg, founded by Nathan Anderson, alleged improper business dealings by Adani. The group, which refuted the allegations, suffered a loss of up to $150 billion in combined market value but has since rebounded.

Hindenburg's response sheds new light on the mechanics of its trade, intriguing other investors due to the complexity of shorting Indian securities. "It was a tiny position," Hindenburg said. "But, to date, our research on Adani is by far the work we are most proud of."

U.S.-based short-seller Hindenburg Research announced that India's securities regulator, SEBI, had sent a letter outlining suspected violations over its short bet against Adani Group last year. Hindenburg disclosed that it may barely come out above breakeven on its trade. In a detailed statement, Hindenburg revealed that Kotak Bank, an Indian firm, created and managed an offshore fund structure for its investor partner to bet against the Adani conglomerate. This provided new insights into the trades that had puzzled many investors. The short-seller reported making $4.1 million in gross revenue from gains related to Adani shorts and just $31,000 from its short position on Adani's U.S. bonds. Hindenburg characterized SEBI's show cause notice as an attempt at intimidation, stating that the regulator accused Hindenburg's report of containing misrepresentations and inaccuracies intended to mislead readers. SEBI has neglected its responsibility, seemingly doing more to protect those perpetrating fraud than the investors being victimized by it, Hindenburg said. SEBI has also been investigating Adani, with India's top court granting it until August 14 to complete the probe. This disclosure adds a new twist to the saga that began last year when Hindenburg, founded by Nathan Anderson, alleged improper business dealings by Adani. The group, which refuted the allegations, suffered a loss of up to $150 billion in combined market value but has since rebounded. Hindenburg's response sheds new light on the mechanics of its trade, intriguing other investors due to the complexity of shorting Indian securities. It was a tiny position, Hindenburg said. But, to date, our research on Adani is by far the work we are most proud of.

Next Story
Infrastructure Transport

NHAI to Build 6-Lane Agra-Gwalior Expressway on BOT (Toll) Mode

To enhance connectivity between the tourism hubs of Agra and Gwalior, National Highways Authority of India (NHAI) will develop 88 km long 6-lane access controlled Agra-Gwalior Greenfield Expressway (NH-719D). NHAI, today signed a concession agreement for the implementation of project with GR Infraprojects, in presence of NHAI Chairman, Santosh Kumar Yadav and senior officials of NHAI and the Concessionaire. The Agra-Gwalior Greenfield Expressway will start from Deori village in Agra and terminate at Susera village in Gwalior. The project shall be developed at a Total Capital Cost of Rs 46.13 b..

Next Story
Infrastructure Transport

Cabinet Nods 166.8-km NH-6 Greenfield Corridor on HAM Mode

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved the proposal for Development, Maintenance and Management of 4-lane Greenfield Access Controlled 166.80 km of National Highway No. 06 from Mawlyngkhung (near Shillong) in Meghalaya to Panchgram (near Silchar) in Assam on Hybrid Annuity Mode as an access controlled greenfield High-Speed Corridor at a total capital cost of Rs 228.64 billion. The project length of 166.80 km lies in Meghalaya (144.80 km) and Assam (22.00 km). The proposed Greenfield high-speed corridor will improve the service level ..

Next Story
Infrastructure Urban

Commercial Ops Begin at Multi-Modal Logistics Park in Nagpur

Under the PM Gati Shakti initiative of Prime Minister with the aim to provide seamless and efficient connectivity for the movement of people, goods and services across various modes of transport, thereby enhancing last-mile connectivity and reducing travel time, and under the guidance of Union Minister of Road Transport and Highways, Nitin Gadkari, the Multi Modal Logistics Park, Nagpur (MMLP Nagpur) at Sindi, near Wardha commenced its commercial operations with a goal to establish a faster link. The MMLP Nagpur established by National Highway Logistics Management (NHLML), a 100 per cent own..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?