'Show cause' notice to US financial research company 'Hindenburg Research'; SEBI action
SEBI: Hindenburg's January 2023 report alleged that a strong network of shell companies was created by Gautam Adani and his brother Vinod Adani and close associates.
SEBI has issued a notice to Hindenburg Research, a US-based financial research firm. This notification was issued in response to alleged violations involving betting on Adani Group shares. Hindenburg accused the Adani Group of stock manipulation. Hindenburg has reported getting SEBI's notice. However, Hindenburg has expressed discontent with this notification, claiming that efforts are being made to muzzle those who expose corruption and fraud.
Hindenburg said it received an email from SEBI on June 27 and later a show cause notice outlining suspected violations of Indian regulations. Hindenburg said 'To date the Adani Group has failed to respond to the allegations made in our reports. The reply given ignores the key issue raised by us. Hindenburg's January 2023 report alleged that a strong network of shell companies was created by Gautam Adani and his brother Vinod Adani and close associates. We explained in detail how billions of dollars were defrauded through these shell companies.'
According to media reports, Hindenburg Research has said that 'it will file an application under the Right to Information Act, seeking the names of SEBI employees who were working on the Adani and Hindenburg case.' Along with this, Hindenburg has also talked about seeking details of meetings and calls between SEBI and Adani and his various representatives.
