Petition Calls for Prosecution of US Short Selling Firm Hindenburg Research and Founder Nathan Anderson Posted on February 16, 2023 News By Akta Yadav 329 Views Hindenburg Research:- A recent report by US-based activist short selling firm Hindenburg Research has caused controversy in the Indian share market, particularly surrounding the Adani Group. The report accused the Adani Group of accounting fraud and "brazen stock manipulation," leading to a significant drop in the group's market value. As a result, a petition has been filed in the Supreme Court of India by advocate ML Sharma, calling for an investigation against Hindenburg Research's founder Nathan Anderson and his associates, and for short selling to be made an offence. Hindenburg Research The Petition The petition filed in the Supreme Court of India seeks to have Nathan Anderson and his associates prosecuted, both in India and the US, for allegedly exploiting innocent investors and causing the "artificial crashing" of Adani Group's stock value. The petitioner has requested the top court's directions for a First Information Report (FIR) to be registered against the short sellers, along with further action to protect Indian citizens and investors from "duping the Indian share market and innocent investors for their vested interest to provide complete justice." Hindenburg Research's Report Hindenburg Research's report on the Adani Group's alleged accounting fraud and "brazen stock manipulation" has led to a significant drop in the group's market value. The report accused the Adani Group of having "taken advantage of complex accounting rules to inflate profits." The group has denied the allegations, and a spokesperson stated that the report is "blatantly erroneous." Hindenburg Research Short Selling Hindenburg Research engages in activist short selling, a practice in which borrowed stocks are sold with the intention of repurchasing them at a lower price later. If the prices fall on the expected lines, the short sellers make a profit. The petitioner has called for short selling to be made an offence and for the prosecution of Nathan Anderson and his associates. Market Impact In the wake of the Hindenburg report's release on January 24, Adani Group's market value has plummeted, with almost $117 billion being erased. This is almost half of the group's combined market value. The share price of Adani Enterprises took another hit on February 3, plunging 35% in morning trade after being placed under National Stock Exchange's Additional Surveillance Measure framework. Conclusion The petition filed in the Supreme Court of India highlights the controversy surrounding the Adani Group and the recent report by Hindenburg Research. The petitioner has called for the prosecution of US short selling firm Hindenburg Research and its founder Nathan Anderson for their alleged role in causing the group's market value to plummet. The impact of this report on the Indian share market has been significant, with further developments likely to follow.
Canada Recalls 41 Diplomats from India Amid Diplomatic Strain Over Controversial Murder Case News October 20, 2023
India frustrated by Trudeau's statements on Nijjar killing and believes there is an opportunity for separatists in Canada News May 5, 2024