Adani vs Hindenburg Around a year ago (January 2023), Hindenburg released a report that accused Adani of improperly using tax havens and of Adani having high debt levels etc… After Hindenburg’s report, Adani released a 400 page argument essay to disprove what Hindenburg said. Unfortunately, the damage was already done and Adani lost $150 billion in shares. Throughout the years, Adani has been recovering their shares at a relatively quick pace. They have basically recovered half of their losses by the time a court case happened in the supreme court in determining who should make the investigation of the 24 different cases pertaining to the whole saga between Adani and Hindenburg In the end, the Supreme Court Judge makes the call that the investigation on Adani will be done by SEBI. (Security and Exchange Board of India) The other party was trying to change this investigative team to another one being either CBI (Central Bureau of Investigation) or SIT (Special Investigation Team). Giving some context on SEBI’s investigation so far, they have currently completed 22 out of the 24 cases. The judge has asked the group to complete the rest of the investigation in three months. They were also asked to investigate whether Hindenburgs short selling was illegal. Majority of SEBI’s board members are mostly appointed by the government and the chair can be replaced at any moment. Since Adani is close to Modi (India’s prime minister), there is a bit of a suspicion that SEBI won’t report anything that will harm Adani due to this relationship. SEBI is also seemingly corrupt, so it’s quite possible that Adani might have bribed them to find their “truth”. Adani has also posted on X saying that “the truth has prevailed”. This tweet or xeet suggests that Adani has won most if not all of the cases charged towards Adani. Sources https://www.cnn.com/2024/01/03/business/india-adani-hindenburg-court-probe-hnkintl/index.html#:~:text=Currently%20worth%20nearly%20%2486%20billion,Indian%20Prime%20 Minister%20Narendra%20Modi. - Completed 22-24 cases - 10 Companies rising by 10% in stock https://www.moneylife.in/article/sebi-under-cbi-lens/40203.html - How the CBI views SEBI https://testbook.com/ias-preparation/securities-and-exchange-board-of-india-sebi-economynotesupsc#:~:text=Limitations%20of%20SEBI&text=SEBI%20does%20not%20have%20full,the%20a rticulated%20purpose%20is%20missing. - Majority of board members are government nominees https://www.thehindu.com/news/national/adani-hindenburg-case-verdict-no-ground-to-transferthe-investigation-from-sebi-to-sit-says-sc/article67700806.ece - Asking to investigate whether hindenburg has done illegal short selling https://www.reuters.com/world/india/indias-top-court-asks-regulator-complete-adani-groupprobe-within-3-months-2024-01-03/ - Agrees and repeats some of the previous points, this is more detailed in the amount of stock that has raised after this incident happened. It repeats the verdict given, etc… https://hindenburgresearch.com/adani/ - Hindenburg’s released research in it’s allegations to Adani
