Adani Group Accusations Originated from US Short-Seller Hindenburg Research
SEBI has asked the Supreme Court for a 15-day extension to investigate the Adani Group following the Hindenburg Report.
The allegations against the Adani Group were made by US short-seller Hindenburg and Research. SEBI on Monday requested the Supreme Court grant a 15-day extension to conclude the investigation.
The apex court has completed investigating 17 out of the 24 transactions.
The Adani Enterprises share price was trading 3.41% lower at Rs 2,452.00 apiece on the BSE. The stock was in losses this morning and is still down more than 2% at Rs 2,464.
SEBI Receives an extension until August 14 from Supreme Court
The Supreme Court has granted the Sebi extension until August 14th to conclude the investigation into the Adani Group. The extension was shorter than the six months sought by the market regulator to complete the investigation.
When SEBI Starts Looking at Adani Investments
SEBI began in October 2022, looking at Adani’s investments in ports, power, and infrastructure in the October 2020 empire. Adani companies registered abroad to conduct the business and pump their share prices without proper affiliations. They said Adani made a mistake, and many times we denied his wrongdoing, and they said it openly many times.
What is the Adani case and Hindenburg issue
Adani Group triggered a stock market rout that erased about USD 145 billion. The issue US short-seller Hindenburg Research in January released a report alleging accounting fraud and stock price Manipulation against Adani Group.
Who is Hindenburg Research and What was Hindenburg accused of Adani
The US short seller Hindenburg is a Forensic Financial Research company and Activist short seller. It focuses on illegal business, irregularities, and bad actors in management. Hindenburg accuses the Adani Group of taking on substantial debt by overleveraging their assets to obtain several large loans amounting to 2.2 lakh crores.
The reasons for Adani’s share drop and whether it will recover are not
FIIs and FPIs who invest in index funds follow the MSCI index and due to this Adani group shares are less in sell. The Adani Group companies regained some of the lost ground in the month of June.
Is it safe to Buy Adani Share and invest? Will it recover and grow in the future?
Yes, it is safe to buy the Adani share and investment because of the allegations. The fundamentals of the company have not changed; they remain strong and will recover and grow in the future. Adani Wilmar is another company with the potential for long-term growth and investment. Sudip Bandyopadhyay, group chairman of Inditrade Capital, says that for long-time investors, it is safe to buy in the Adani ports.
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