Vivid News 24: The Adani Enterprises case was brought before the Supreme Court of India following the filing of a public interest litigation calling for an investigation into the US-based business Hindenburg Research, whose report significantly decreased the value of Adani Group shares on the stock market.
To the market regulator Securities and Exchange Board of India, a request for an investigation into the short seller and its allies for “exploiting and duping lakhs of innocent people” has also been made (SEBI). The PIL’s author, advocate ML Sharma, stated that he wanted to look into the short-selling company and its creator, Nathan Anderson, who are both headquartered in the US.
In the petition, short-seller Hindenburg Research is alleged to have “deliberately” produced the report critical of the Adani Group immediately before its Rs 20,000 billion follow-on public offer, according to Sharma (FPO). Sharma argued that the company has to be looked into for creating investor loss and punished.
Also Read SC dismisses plea against candidates contesting from two seats
He requested that the short seller make up for those investors who suffered significant stock market losses during the previous six sessions. The devastating investigation, which charged Adani Enterprises with market manipulation and accounting fraud, caused the company’s shares to drop 76% from their all-time high in December in just 31 trading days. The corporation is allegedly running the “largest swindle in corporate history,” according to the article.
The stock fell to a 52-week low of Rs 1,017.10 on Friday, February 3, plummeting 75.72 percent from its peak. It reached its all-time high of Rs 4,189.55 on December 21, 2022. The market value of Adani Enterprises has decreased by more than 2.88 lakh crore. At the end of trading on December 21, 2022, the company’s market capitalization was Rs 4.45 lakh crore.
In its investigation, Hindenburg Research said that the corporation had engaged in “brazen stock manipulation, money laundering, and accounting fraud scheme over the course of decades.” According to the short seller, the report was summarized following a two-year inquiry. The Adani Group defended itself by describing Hindenburg’s study as “maliciously nasty and unresearched,” claiming that it hurt the Adani Group, its shareholders, and investors.
The ports-to-power conglomerate claimed in a 413-page response to the 106-page Hindenburg Research report that “this is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity, and quality of Indian institutions, as well as the growth story and ambition of India.
The Adani Group continued, “It is quite troubling that the remarks of an entity sitting thousands of kilometers away, with no integrity or ethics, have created a substantial and unprecedented unfavorable impact on our investors.
Also Read US and India to boost defense and technology cooperation
