Harish salve says that Adani made money at cost of the Middle Class. He demanded a probe into Hindenburg.
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The Hindenburg Report
The release of the Hindenburg stated some very serious allegations against the Adani Group, because of which the company’s stocks had been directly impacted. The report stated that the shares of Adani Group companies had crashed and were seen trading in the red after the Hindenburg Research had alleged fraud and stock manipulation by the Adani group.
The report released by Livemint in reaction to the Hindenburg allegations, also stated that the seven Adani Group stocks had lost Rs 46,086 crore in market cap within two days. It further speculated that if one had to look at the finer nuances, then Adani Total Gas had lost Rs 12,366 crore, which was followed by Adani Ports which had lost Rs 8,342 crore with Adani Transmission, also losing Rs 8,039 crore.
The Hindenburg Research report that resulted in Adani share prices dropping had prepared the report after two years of thorough research and investigation by their subordinate forensic financial research firm. Hindenburg Research tweeted on its official Twitter account that they were revealing the findings after 2 years of investigation, presenting evidence and that the INR 17.8 trillion that the Adani group had engaged in a brazen stock manipulation which had led to fraud scheme over decades.
The research has further alleged that Gautam Adani, who is the founder as well as the Chairman of the Adani Group had managed to amass a net worth of nearly $120 billion, solely through stock price appreciation over the last three years. It also alleged that the group’s seven key listed companies had spiked at an average of 819 percent over the entire period.
This news of Adani Group’s shares crashing came at a time when Adani Enterprises was looking to raise Rs 20,000 crore through a follow-on-public offer (FPO).
Supreme Court Steps in
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The Supreme Court has now stepped in to set up a committee to investigate the issues which are related to the Hindenburg Research report on the Adani Group and also the impact it has had on the Adani stocks and the entire stock market. The Supreme Court does not always probe into stock market action, however, the curious case of the Adani group owing to its rapidly growing size has had a huge impact on its shareholders. Such questions have arisen in the wake of the report alleging stock manipulation and fraud through offshore entities as such they need clear answers from Adani, through the regulatory system, probe agencies, and the government.
SEBI has stated that the court that has already started probing the supposed violations of laws and rules by Adani and its activities which occurred immediately before and after the Hindenburg report.
Harish salve calls for probe
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Senior lawyer Harish Salve has thus, demanded a thorough investigation into US short-seller Hindenburg Research’s report which has led to market volatility the previous month, which had been dragged down by Adani group firms.
He also highlighted the politics of the entire episode, Mr. Salve also continued to say that Hindenburg “is no Good Samaritan” and the issue has taken a different direction leading to making money off the misfortune of the middle-class investor. He said that the investigation was ‘critical’ for the immediate as investors were wary.
