SEBI Challenges Hindenburg Research Over Adani Allegations

India's market regulator, SEBI, has issued a show cause notice to Hindenburg Research for alleged unfair trade practices linked to their 2023 report against the Adani Group. Hindenburg refutes the allegations, stating that SEBI's move is an attempt to silence critics of corruption.

India's markets regulator, SEBI, has issued a show cause notice to Hindenburg Research, accusing the US firm of 'unfair trade practices' following its explosive report against the Adani Group in early 2023. Hindenburg described the action as 'nonsense' and an effort to 'silence and intimidate' whistleblowers.

According to the show cause notice dated June 26, SEBI alleged that Hindenburg had 'deliberately sensationalised and distorted certain facts' in its January report on the Adani Group. The notice also claimed Hindenburg collaborated with a New York hedge fund to profit from the report's impact.

Hindenburg, in a response posted on its website, stated that it earned just $4.1 million from its Adani-related positions and criticized SEBI for not probing deeper into the allegations of offshore shell entities and surreptitious dollar movements connected to Adani. The US firm reiterated its stance that SEBI's focus seems more on silencing dissent rather than addressing corruption.

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