The Securities and Exchange Board of India (SEBI) has issued a statement addressing the recent report by Hindenburg Research, published on August 10, 2024. The report raised concerns regarding SEBI's actions and its oversight of the Adani Group, including allegations of illegal share ownership and price manipulation.
SEBI's statement urged investors to remain calm and exercise due diligence before reacting to such reports. The regulatory body highlighted that the report itself includes a disclaimer stating that Hindenburg Research may hold short positions in the securities mentioned.
Regarding the allegations of inaction against the Adani Group, SEBI clarified that the claims have been thoroughly investigated. The Supreme Court, in an order dated January 3, 2024, noted that SEBI had completed 22 out of 24 investigations into the Adani Group. One more investigation was completed in March 2024, and the final one is nearing completion. SEBI emphasized that it has conducted an extensive investigation, including issuing over 1,100 letters and emails, seeking assistance from domestic and foreign regulators, and examining over 12,000 pages of documents.
SEBI also addressed the criticism of issuing a show-cause notice to Hindenburg Research on June 27, 2024, alleging violations of securities laws. SEBI affirmed that the notice was issued following due process, and the proceedings are ongoing in accordance with the principles of natural justice.
The report further questioned amendments to the SEBI (REIT) Regulations, 2014, alleging that they benefited a large multinational financial conglomerate. SEBI clarified that any regulatory changes undergo a rigorous consultation process before being approved by the SEBI Board. The board's discussions and outcomes are made publicly available for transparency.
