The US-based short seller Hindenburg Research has posted a cryptic message on X (Formerly Twitter) which hints at a major revelation involving an Indian company. The message read: “Something big soon India”. This comes after Hindenburg published allegations against the Adani Group, accusing them of insider trading and stock market violations.
Something big soon India
— Hindenburg Research (@HindenburgRes) August 10, 2024
Massive Decline In Adani Group's Stock
On January 24 last year, the firm published a report sharply criticizing the Adani Group, controlled by Gautam Adani just before the planned share sale of Adani Enterprises. Hence, this report triggered which resulted in a massive decline in the group’s stocks, wiping out approximately $86 billion in market capitalization.
Adding further, the group's overseas-listed bonds faced a significant sell-off in response to the allegations. However, the Adani Group has consistently denied all accusations made in the Hindenburg report. At the time of its release, the group dismissed the claims as baseless.
What SEBI Revealed In Adani-Hindenburg Case?
The Securities and Exchange Board of India (SEBI) has made a new revelation in the Adani-Hindenburg case, considering the connection between the American short-seller firm Hindenburg Research and New York hedge fund manager Mark Kingdon. According to SEBI, Hindenburg shared its report with Kingdon almost two months before releasing it on the Adani Group. This allowed for strategic trading, resulting in massive profits.
Biggest Fraud In Corporate History
SEBI issued a 46-page show cause notice to Hindenburg, stating that Hindenburg and Kingdon Capital Management had entered into a 'Research Agreement' in May 2021. Under this agreement, the report was shared. The report shared two months prior was almost identical to the report published in January 2023, which accused the Adani Group of perpetrating "the biggest fraud in corporate history." This accusation led to a market value decline of over $150 billion in Adani’s listed companies.
