Adani-Hindenburg Issue: It’s been over a year since the controversial report on the Adani Group released by American short-seller firm Hindenburg Research, but it’s still the talk of the town. The Hindenburg Report is once again in the news.
Adani-Hindenburg Issue
It’s been over a year since the controversial report on the Adani Group released by American short-seller firm Hindenburg Research, but it’s still the talk of the town. The Hindenburg report has once again come into the limelight as, due to its report, six Adani group companies have received show cause notices from the Securities and Exchange Board of India (SEBI).
Adani Enterprises itself has informed that it has received a show cause notice from SEBI. On Thursday, the company informed the stock markets about the notice. The company said that the show cause notices it received from SEBI were due to non-compliance of SEBI norms.
Other Ahmedabad-based group companies including Adani Ports and Special Economic Zone, Adani Power, Adani Energy Solutions, Adani Wilmer and Adani Total Gas have also received show cause notices from Sebi this week. The companies gave such information to the stock market.
Here is our statement on the show-cause notices reportedly issued by SEBI to six Adani Group companies pic.twitter.com/MCgCFGVlYj
— Jairam Ramesh (@Jairam_Ramesh) May 3, 2024
The Adani Group also said that the notice received from SEBI during the March 2024 quarter had no impact on financial transactions. The company has also claimed that there is no evidence of non-compliance with applicable rules and laws.
Hindenburg Research published a report against the Adani group last year. The Adani Group parent company says that after the controversial report in January 2023, a law firm conducted an independent assessment. The assessment revealed that those mentioned as related parties in Hindenburg’s report are not related to the parent company or any of its subsidiaries.
Hindenburg Research had leveled several serious allegations against the Adani Group, including manipulation of share prices. After that, the controversy escalated. The case was investigated by the market regulator SEBI under the supervision of the Supreme Court.
The investigation found that the allegations of alleged irregularities leveled against the Adani Group in the Hindenburg Research Report were not true.
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