Hindenburg's exposé of Adani continues!
India’s Securities Regulator SEBI sent a bizarre email to Hindenburg about their allegations against Adani, and Hindenburg Research has published it entirely with their own fiery response.
It’s been over a year and a half since Hindenburg Research had accused the Adani group of “brazen stock manipulation” and “accounting fraud scheme” in January last year, presenting substantial evidence the company is “pulling the largest con in corporate history”.
Hindenburg’s recent statement claims SEBI has been focused on defending Adani instead of investigating the evidence they’ve exposed.
Hindenburg has published some bizarre emails they’ve received from India’s Securities Regulator SEBI, which includes a 46-page notice from SEBI that accuses Hindenburg of misleading statements and inaccurately using terms like "scandal," but fails to identify any factual inaccuracies in Hindenburg's report.
SEBI's investigation into Hindenburg's report on Adani Group appears more focused on undermining Hindenburg rather than addressing the serious allegations of fraud.
"Today we are sharing the entirety of this notice, frankly because we think it is nonsense, concocted to serve a pre-ordained purpose" (Hindenburg).
Hindenburg's report accused Adani Group of "engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades" involving billions of dollars and numerous offshore shell entities.
Despite Hindenburg's comprehensive evidence and over 40 subsequent media investigations corroborating and adding to these findings, Adani has not directly addressed the allegations, offering only "deflections and blanket denials" (Hindenburg).
Following Hindenburg's report, Deloitte resigned as Adani Ports' auditor, citing issues with undisclosed related-party transactions highlighted in the report.
SEBI's actions appear to align with broader governmental efforts to suppress criticism of Adani, including the arrest of journalists and expulsion of critical members of parliament.
SEBI's notice does not mention Kotak Bank, which played a role in the offshore fund structure used by Hindenburg's investor partner, possibly to shield powerful Indian business figures from scrutiny.
Hindenburg suggests that Adani's confidence in facing regulatory actions stems from its relationships with SEBI, including meetings between Gautam Adani and SEBI Chairperson Madhabi Buch to discuss significant acquisitions involving offshore entities linked to Adani's network.