- SEBI is looking into charges made by Hindenburg Research.
- SEBI is also looking into market activity in response to the report.
- Adani’s business plummets by more than $100 billion.
The Indian Securities and Exchange Commission has stated that it is looking into charges made by Hindenburg Research against companies owned by multibillionaire Gautam Adani.
The Securities and Exchange Board of India (SEBI) is also looking into market activity in response to the report.
Mr. Adani’s business empire saw its stock market value plummet by more than $100 billion (£82.3 billion) as a result of charges of market manipulation and financial crime.
The claims have been refuted by Adani Group.
On Monday, SEBI said in a Supreme Court filing that it was studying the allegations and “the market activity immediately preceding and post the publication of the report”.
“SEBI is strongly and adequately empowered to put in place regulatory frameworks for effecting stable operations and development of the securities markets,” it added in a filing to the Supreme Court.
Adani Group also attempted to reassure investors on Monday, stating that it has excellent cashflows and that its business plans were fully funded.
“We are confident in the continued ability of our portfolio to deliver superior returns to shareholders.”
Set to report
Adani Enterprises, the conglomerate’s flagship company, is set to report quarterly earnings later on Tuesday.
Mr. Adani’s company includes seven publicly traded companies that engage in a variety of industries, including commodities trading, airports, utilities, ports, and renewable energy.
A report published last month by the US-based short-seller Hindenburg Research said that Adani Group companies had engaged in “brazen” stock manipulation and accounting fraud for decades.
It also claimed its companies had “substantial debt” which put the entire group on a “precarious financial footing”.
Short-selling is a bet that an asset’s value will fall.
Without presenting evidence, Adani Group has stated that the Hindenburg report was meant to allow the US-based short seller to earn gains.
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