Hindenburg Report Updates: US research and investment company Hindenburg Research on Saturday (August 10) wrote to chief market regulator SEBI Madhavi Puri Buch and her husband Dhaval Buch Moto. Hindenburg said Madhavi and her husband have stakes in offshore companies that oversee Adani group financial institutions. That cess has been heavily politicized. What are the latest updates on this case yet?
Leader of Opposition in the Lok Sabha and Congress Rahul Gandhi has demanded a Hindenburg inquiry against the Sebi chairman. He has said that market regulator Shuchita Kibi is impressed by the above writings of the chairman. They are demanding a JPC (Joint Parliamentary Committee) inquiry asking three questions from the government.
Congress president Mallikarjun Kharge in a post on social media platform X said that SEBI has given a clean chit to Adani's Hindenburg or January 2023 announcement before the Supreme Court. Now, as far as SEBI is concerned, few companies have come forward with cooperation.
Mallikarjun Kharge further said that the middle class needs to nurture the small and middle class and their hard earned money is invested in the stock market and trusted to protect it. A JPC inquiry is required to investigate this massive scam. Until this happens, constitutional institutions will remain in limbo.
BJP leader Rajeev Chandrasekhar said in response to the leaders that there is a conspiracy to make the economic system of the country healthy. "This is a conspiracy and some forces are working to destabilize India's economy and discredit our regulators, stock markets and financial system," they said in a post.
Chandrasekhar continued, "This is something, which should never be allowed to happen to us. Our country is on the path of expansion and development. This is a conspiracy and a deliberate attack on India's economy."
Sebi chief Madhavi Buch and her husband issued a joint statement to Hindenburg, saying the sacking of Sir was completely baseless. Investors in his company were given corporate jobs, salaries, bonuses and ESOPs, the statement said.
Citing questions of malicious and selective manipulation in public notices by Hindenburg Research, the Adani group also said on Sunday that it had no relationship with the chairman of market regulator Sebi or his husband. The group said the Supreme Court had dealt with such questions for the first time in January, 2024.
Hindenburg also replies from Sebi Key. Investors in the press rate that they stay calm and think first before making your investment decisions. Experts also believe that investors can watch the ups and downs of the corporation as the market opens from Monday.
A few days ago, when the US-based Hindenburg Research accused the Adani Group of "accounting fraud, stock manipulation and money laundering" in a report, the share prices of its companies started falling sharply and experts raised many questions. Started picking up.
An important question was whether these allegations would make it easier for the group to raise funds for its unfinished and new mega projects.
Adani Group's footprint is everywhere in India, be it its range of products or investments in ports or airports.
Before the crisis, the Adani group considered itself a $260 billion conglomerate. But if its current plans are worked out or its next plans are implemented, experts believe the group's size could double in a few years.
Vaishnav Vashishth, an Indian-origin stock market and currency market expert in Singapore, says the cloud of crisis is not only hanging over the Adani group but many of the Modi government's big plans are also at risk.
"Right or wrong, I won't go into it, but the current government has handed over many of its ambitious projects to groups like Adani, be it in the infrastructure sector or the Self-reliant India plans or the agriculture sector," he said. said. says
What did Hindenburg say while commenting on SEBI?
Hindenburg has said that SEBI has failed to recognize the factual inaccuracies in the case even after a year and a half of disclosure by us. Instead, fraud was alleged by Indian regulators and one of our people in the case said 'Sebi is corrupt and helping the Adani group by relaxing the rules'.
Did Hindenburg make hundreds of millions of dollars by shorting Adani shares along with dozens of companies? Answering this question, Hindenburg himself said that we have an investment partner. Without disclosing the investor's name, Hindenburg said the investor shorted his short position in Adani Group shares and the group's US bonds to just $31,000 with the help of an investment partner, netting USD 4.1 million in gross proceeds.
Accusing the Adani Group, the short seller said, "So far Adani Group has failed to refute the allegations in our report. Instead they have ignored every major issue raised by us by accusing us in the media. We were tried. False.
In our January 2023 report, we provided evidence of a vast network of offshore shell entities controlled by Gautam Adani's brother Vinod Adani and close associates, Hindenburg said. We have detailed how billions of rupees have been pumped into public and private institutions by these institutions and are often unaccounted for.
Criticizing Sebi, the short seller said, "The notice suggests that our disclosure was secret or fraudulent. The notice is designed to explore legal arguments claiming jurisdiction over us. Here we want to explain." That we are a US-based research firm with zero Indian entities, employees, consultants or operational roles.
Sebi, in its notice, said the disclosures in the report are misleading as Hindenburg "participates indirectly in the Indian securities market." However, the US firm responded that it is no secret, everyone on earth knows we are short selling, as we have clearly and repeatedly declared it ourselves.
What did Hindenburg say about Kotak Bank?
The short seller disclosed that an offshore fund structure created and maintained by Kotak Bank was used by its "investment partner" to short sell Adani Group shares. However, Hindenburg has not disclosed the name of its investment partner. Hindenburg reported that only $4.1 million was generated by investment partners in Adani-related deals. While he earned only $31,000 through American Bonds.
Hindenburg has claimed that Kotak Bank is not "distinctly" named in Sebi's notice. "We suspect that Sebi's failure to mention Kotak or any other member of the Kotak board in the notice may be meant to shield another powerful Indian tycoon from the prospect of investigation," Hindenburg said.
What was Kotak's response to Hindenburg's remarks?
Mahindra International Limited (KMIL) has responded to American short seller Hindenburg's comments. The company clarified on Tuesday that Hindenburg was never its client or investor. The company said, "Kotak Mahindra International Limited (KMIL) and KIOF are clarifying that Hindenburg was never a client of the firm, nor was he ever an investor in the fund. The fund was never aware that Hindenburg owned any of its investors." partner.' KMIL has also received confirmation and declaration from the investor of the fund that its investment was made as principal and not on behalf of any other person.
The company also said that KIOF (K-India Opportunities Fund Limited) follows KYC procedures while onboarding customers and all its investments are made in accordance with all applicable laws. KIOF is a foreign portfolio investor registered with SEBI and regulated by the Financial Services Commission of Mauritius. The fund was established in 2013 to enable foreign clients to invest in India. The Fund follows proper KYC procedures while onboarding clients and all its investments are made in accordance with all applicable laws. We have cooperated with regulators regarding our operations and will continue to do so.
Why Boycott Hindenburg?
ReplyDelete