In its latest report, Hindenburg, the American short-seller firm, has levied serious allegations against market regulator SEBI (Securities and Exchange Board of India). On Saturday, SEBI Chief Madhabi Puri Buch issued a statement on Sunday, declaring these allegations as baseless. Now, Gautam Adani's Adani Group has also released a statement refuting the claims made in Hindenburg's report, labeling them as neglectful of facts and laws.
Adani Group Dismisses All Allegations
Adani Group has issued a statement regarding Hindenburg Research's new report. It states that the accusations in the report are maligned and presented by distorting various facts. Adani Group wholly rejects these recycled defamation claims. The statement further elaborates that these accusations have been thoroughly investigated and deemed baseless earlier, even by the Supreme Court in January 2024.
In their statement regarding Hindenburg's latest report, Adani Group reiterated, 'Our overseas holding structure is entirely transparent, regularly updated across various public documents.' The group made it clear that they have no business dealings with the individuals or matters cited in this deliberate character assassination attempt.
What Are Hindenburg's Allegations?
In its Saturday report, Hindenburg claimed that there were links between Adani Group and SEBI Chief Madhabi Puri Buch, suggesting that offshore entities used in the Adani money siphoning scandal were linked to the SEBI Chief. The report alleged that Buch and her husband opened an account with IPE Plus Fund 1 in Singapore on June 5, 2015, with their total investment estimated at 10 million dollars. It further claimed that a director from Adani Group, through India Infoline, established the offshore Mauritius fund, registered in the tax haven Mauritius.
Previous Allegations Against Adani Group
On January 24, 2023, Hindenburg released a research report involving the Adani Group led by billionaire Gautam Adani. The report accused the group of stock market manipulation and massive debt. As a result, Gautam Adani's net worth suffered a significant drop, company shares plummeted by up to 85%, and his wealth decreased by approximately 60 billion dollars.
Adani Group's 414-Page Rejoinder
In response to the Hindenburg report, Adani Group presented a detailed clarification comprising 414 pages, addressing 88 raised questions. Adani Group's response dismissed the Hindenburg report's accusations as 'nothing but lies.' It described the document as a selective compilation of misinformation with the deliberate intent to defame the group. Despite this, Hindenburg's report greatly affected investor sentiment, resulting in substantial losses for Adani Group.
