A public interest litigation (PIL) has been filed in the Supreme Court of India, seeking an investigation into the Hindenburg Research report about Adani Group and its alleged “criminal conspiracy” that led to a sharp drop in the Adani Enterprises share price, Adani Power share price, Adani Green share price, and the share price of other Adani companies, causing huge losses for investors.
Allegations filed on Nate Anderson and Hindenburg Research
The PIL was filed by advocate M.L. Sharma, who claimed that US resident Nate Anderson and Hindenburg Research, along with their Indian entities, had engaged in a criminal conspiracy that involved short selling and the release of a fake research report about the Adani Group.
Consequences of the Hindenburg report
The Hindenburg report about Indian billionaire Gautam Adani caused a sharp decline in the Adani share price and erased over $100 billion from his empire, knocking him down on the global rich list. The Adani Group has disputed the allegations made in the report.
Role of Securities and Exchange Board of India (SEBI)
The PIL also questions the role of the Securities and Exchange Board of India (SEBI) in protecting investors and suspending trading in the short-selling stock. The PIL seeks the court’s intervention to conduct an inquiry, prosecute the short sellers under the Indian Penal Code and SEBI Act, and recover their profits along with a penalty to compensate investors.
Goals of the PIL
A PIL has been filed in the Supreme Court of India, calling for an investigation into the alleged “criminal conspiracy” behind the Hindenburg report on Adani Group.
The PIL, submitted by advocate M.L. Sharma, claims that US resident Nate Anderson of Hindenburg Research and his Indian associates engaged in a conspiracy that involved short selling and the release of a fake research report, leading to a sharp decline in the share price of Adani Group and causing huge losses for investors.
The report from Hindenburg Research resulted in a stock market rout and erased over $100 billion from Adani’s empire. The Adani Group has denied the allegations made in the report. The PIL also questions the role of SEBI in protecting investors and suspending trading in the short-selling stock. The PIL calls for an inquiry to prosecute the short sellers, recover their profits along with a penalty, and compensate investors.