Adani Group’s shares found themselves back in the spotlight as US-based short-seller Hindenburg Research levied a fresh set of allegations, this time targeting the Securities and Exchange Board of India (SEBI). The short-seller accused SEBI’s chief, Madabhi Puri Buch, of being involved in the alleged siphoning of funds. SEBI’s chief has dismissed these claims, calling them an attempt at “character assassination.” However, Hindenburg continued its offensive by posting a detailed thread on social media platform X. The following is a timeline of the events that have transpired so far.
January 24, 2023: Hindenburg’s initial report
The saga began on January 24, 2023, when Hindenburg Research released a report titled “Adani Group: How The World’s 3rd Richest Man Is Pulling the Largest Con in Corporate History.” The report accused the Adani conglomerate of engaging in stock manipulation and accounting fraud. This report sent shockwaves through the market, leading to a sharp decline in the share prices of Adani Group companies.
January 26, 2023: Adani Group’s response
In response to Hindenburg’s report, the Adani Group dismissed the allegations as “baseless.” Despite this rebuttal, the share price of Adani Enterprises, the flagship company of the conglomerate, plummeted on the stock exchanges. Other companies within the group also saw significant declines, as investor confidence waned.
February 1, 2023: FPO cancellation and legal actions
On February 1, 2023, Adani Enterprises took the unprecedented step of canceling its Rs 20,000 crore follow-on public offer (FPO), despite it being fully subscribed. The decision to withdraw the public offer added to the market’s uncertainty regarding the group’s financial health.
Simultaneously, a public interest litigation (PIL) was filed in the Supreme Court, calling for the formation of a committee to investigate the allegations made by Hindenburg. In a related development, Credit Suisse halted the acceptance of bonds from Adani Group companies as collateral for margin loans to its private banking clients, further deepening the crisis.
March 2, 2023: Supreme Court’s directive to SEBI
In response to the PIL, the Supreme Court on March 2, 2023, instructed SEBI to complete its investigation into the Hindenburg allegations within two months. The court directed the market regulator to determine whether there had been any stock price manipulation or financial irregularities within the Adani Group.
May 8, 2023: Expert panel’s findings
On May 8, 2023, the six-member expert panel appointed by the Supreme Court submitted its findings. The panel reported that there was no “evident pattern of manipulation” in the Adani Group’s companies and found no regulatory failures on the part of SEBI. This outcome provided some relief to the Adani Group, although questions remained about the broader implications of the Hindenburg report.
The continuing saga
Despite the Supreme Court panel’s findings, Hindenburg Research’s latest allegations against SEBI have reignited the controversy. As the situation continues to develop, the roles of both SEBI and Adani Group remain under scrutiny, with significant implications for the Indian financial market.
. The short-seller accused SEBI’s chief, Madabhi Puri Buch, of being involved in the alleged siphoning of funds. SEBI’s chief has dismissed these claims, calling them an attempt at “character assassination.” However, Hindenburg continued its offensive by posting a detailed thread on social media platform X. The following is a timeline of the events that have transpired so far.){kind=link}