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Business News/ News / India/  SEBI, Attorney-General may take action against Hindenburg as its report is based on lies: Adani Group CFO

SEBI, Attorney-General may take action against Hindenburg as its report is based on lies: Adani Group CFO

Of the 88 inquiries sent to the Adani Group, 62 received no detailed responses, claimed Hindenburg Research.

 Jugeshinder Singh is the chief financial officer (CFO) of Adani Group.Premium
Jugeshinder Singh is the chief financial officer (CFO) of Adani Group.

The Securities and Exchange Board of India (SEBI) may allege that a certain investor suffered financial loss as the Hindenburg Research is based on lies, according to Adani Group CFO Jugeshinder Singh. In such a case, the regulatory body can take legal action. Even an investor or a ministry or even the Attorney-General for India can file a case, civil or criminal, based on such understandings.

Singh was speaking to Sajeet Manghat of BQ Prime when he said that Hindenburg would have to face justice in India. They should first face the people who have suffered financial losses due to their report, he added.

Singh has also said that the company answered all the questions raised by US short seller Hindenburg Research. Moreover, he said that the Adani Group had attached relevant documents in support of each answer.

Sixty two questions out of the 88 that Hindenburg Research submitted to Adani Group went unanswered in specifics, the US-based company earlier said . "Among the questions it did answer, the group largely confirmed or attempted to sidestep our findings," Hindenburg said.

Singh said, even though it took the company 2-3 days to reply, it did reply sufficiently. Now, it is not up to the Adani Group to measure the effects of its answers. As always, the company will focus on business, he added.

Also Read: ‘A calculated attack on India’: Adani Group on Hindenburg allegations 

According to Singh, Hindenburg doesn’t even have a formal office and works out of a shared office space.

In its two-year study, Hindenburg claimed that the Adani Group had participated in “brazen stock manipulation" and accounting fraud over a period of decades and criticised the conglomerate's "substantial debt". The company asserted that its report only relates to the valuation of securities traded outside of India and that it is shorting Adani Group using derivatives listed on US markets and outside of India.

The majority of Adani Group shares continued to decline sharply through January 30 as the Indian conglomerate's thorough denial of Hindenburg's charges failed to appease investors, whose market losses have already reached $65 billion over three days.

Also Read: Gautam Adani strikes back. Can he win the perception war?

Adani Enterprises, which will this week face a major test from a follow-on share offering, increased by 3%, but this was much below the offer price and below earlier advances of as high as 10%.

Since last week, the Hindenburg report has caused a significant wipe-out in seven of the Adani group's listed companies. The market capitalization of the seven listed group firms had decreased by a total of $65 billion as of January 30. With a $21 billion loss, Adani Total Gas came out on top.

(With agency inputs)

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Sounak Mukhopadhyay
Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and sports. Before working with digital news publications, he worked as a freelance content writer.
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Published: 30 Jan 2023, 11:47 AM IST
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