Adani-Hindenburg Issue: Six Entities Under Scrutiny For Suspicious Short-Selling In Adani Shares
Adani group shares were subject to suspicious trading by four foreign portfolio investors, one corporate, and one individual, as per the Supreme Court's panel report.
Suspicious trading activity occurred as certain entities acquired short positions in Adani group stocks before the Hindenburg report was released. These entities then made significant profits by closing these positions after the report's publication, reports Financial Express.
These entities are under scrutiny and a detailed investigation is underway.
Between 1 April 2018 and 31 December 2022, SEBI received 849 alerts regarding Adani group scrips.
Of which 603 alerts were about price volume, 246 were about insider trading. Three stock exchanges examination reports were submitted to SEBI and are being reviewed.
As per the report, there was no clear evidence of manipulative contribution that could be linked to one or multiple entities in Adani Enterprises.
The committee has requested the capital markets regulator to compile comprehensive data charts showcasing price movements across all stocks within the Adani group, and present them for detailed analysis.
Hindenburg's report labeled the Adani empire as the largest corporate fraud in history, accusing them of a blatant manipulation of stock and accounting fraud.
Despite their denial of these allegations, Adani Group witnessed a decline in shares post the report's publication on 24 January.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.