There has been an uproar since the new report of American short seller firm Hindenburg Research came out. Now the Adani Group has given its first reaction to the report that came late on Saturday evening. Denying the allegations made by Hindenburg, the Adani Group said on Sunday that it has no commercial connection with SEBI chief Madhabi Puri Buch, which has been claimed in the Hindenburg report.
There is no relation with the persons mentioned in the report
Adani Group denied the new report of Hindenburg Research a day later, saying that Adani Group has no commercial dealings with the persons or matters mentioned in the report. This is the first reaction of Adani Group to the sensational report released by Hindenburg Research late on Saturday evening. The report alleges that both Vinod Adani and his close associates and SEBI Chairperson Madhabi Puri Buch had invested in some foreign funds.
The structure of foreign holding is transparent
The group also rejected the allegations leveled against it. The Adani Group said that it rejects the allegations leveled against its companies and reiterates that the structure of its foreign holdings is completely transparent. Hindenburg’s report says about the Adani Group that it diverted funds from one place to another by weaving a web of companies.
The case started in January last year
The case of Adani Group and Hindenburg Research is not new. It started about one and a half years ago in January last year, when Hindenburg released its first sensational report against the Adani Group. In it, Hindenburg had made serious allegations against the Adani Group, including inflating the price of shares and misappropriation of funds. Hindenburg also called it the biggest fraud in the history of the corporate world. Adani Group had to suffer huge losses due to that report of Hindenburg and the market cap of its companies had fallen by more than $ 80 billion.
Hindenburg received a show cause notice
Later, market regulator SEBI started investigating the allegations made by Hindenburg against the Adani Group. The ongoing investigation by SEBI was monitored by a committee appointed by the Supreme Court. SEBI’s investigation has not yet found concrete evidence to prove Hindenburg’s allegations. The market regulator also recently issued a show cause notice to the American short seller firm as part of the investigation into the related matter.
SEBI chief has rejected the allegations
Now the whole matter has taken a different turn. Hindenburg’s new allegation is that due to the alleged connection of SEBI chief with Adani Group, the investigation has not been done properly and SEBI is not able to find anything against Adani Group. Before Adani Group, SEBI Chairperson Madhabi Puri Buch and her husband Dhawal Buch have also issued a joint statement this morning and completely rejected Hindenburg’s report. They have called Hindenburg’s allegations an attempt to assassinate the character.
Also read: SEBI chief Madhabi Puri Buch rejected Hindenburg’s report, said – this is an attempt to defame her character