Hindenburg's blog post accuses SEBI of going soft on Adani Group, while failing to protect investors. The US short-seller Vows to Pursue the Matter, Despite Intimidation.
Based on a comprehensive search of major Western media outlets, here is a summary of how they have covered Hindenburg Research's response to the show cause notice issued by India's market regulator SEBI regarding their report on the Adani Group:
## Hindenburg Accuses SEBI of Aiding Adani, Calls Allegations 'Nonsense'
In a scathing blog post on July 1, 2024, Hindenburg Research denied allegations from SEBI that its report on Adani contained misleading information meant to deceive readers. The U.S. short seller called SEBI's 46-page show cause notice "nonsense" and an attempt to silence critics who expose fraud by the powerful in India.[1][3][5][7][9][10]
Hindenburg accused SEBI of neglecting its duty and doing more to protect perpetrators of fraud than investors. It alleged the regulator had "surreptitiously aided" Adani after the January 2023 report.[3][5][9]
## New Details on Hindenburg's Adani Short Position
SEBI's notice revealed Hindenburg worked with one investor partner, U.S. hedge fund Kingdon Capital Management, on the Adani short trade.[3][4][10] A Mauritius fund set up by India's Kotak Mahindra Bank created the offshore structure Kingdon used to short Adani, providing new details on these trades.[3][4][5][8][10]
However, Hindenburg said it made only $4.1 million in gross revenue from the Adani short and $31,000 from its own short position in Adani bonds. Net of legal and research costs, it barely expects to break even, refuting claims of a massive windfall.[3][5][9][11]
## Hindenburg Cites 40+ Media Probes Backing its Findings
Hindenburg argued that since its initial report, over 40 independent media investigations have corroborated its findings of suspected fraud at Adani. Meanwhile, the Indian conglomerate has still not directly addressed most of the allegations, instead offering blanket denials.[1][3][5][8][9]
## Adani Stocks Shrug Off Hindenburg Rebuttal
Unlike the crash after Hindenburg's January 2023 report, Adani Group stocks largely held steady following the short seller's sharp response to SEBI. Adani company shares closed flat to marginally lower on July 2, suggesting investors gave a cold shoulder to Hindenburg's latest salvo.[4][6][9]
In summary, Hindenburg's strong rebuttal to SEBI has brought its clash with Adani back into the spotlight, while revealing new details about its short trade. But the impact on Adani's market value has been limited so far compared to the initial report. The focus is now on SEBI to see if it can conclusively prove wrongdoing by either Adani or Hindenburg as it wraps up its long-running probe.[3][4][5][6][7][8][9][10][11]
Based on a comprehensive search of major Western media outlets, here is a summary of how they have covered Hindenburg Research's response to the show cause notice issued by India's market regulator SEBI regarding their report on the Adani Group:
## Hindenburg Accuses SEBI of Aiding Adani, Calls Allegations 'Nonsense'
In a scathing blog post on July 1, 2024, Hindenburg Research denied allegations from SEBI that its report on Adani contained misleading information meant to deceive readers. The U.S. short seller called SEBI's 46-page show cause notice "nonsense" and an attempt to silence critics who expose fraud by the powerful in India.[1][3][5][7][9][10]
Hindenburg accused SEBI of neglecting its duty and doing more to protect perpetrators of fraud than investors. It alleged the regulator had "surreptitiously aided" Adani after the January 2023 report.[3][5][9]
## New Details on Hindenburg's Adani Short Position
SEBI's notice revealed Hindenburg worked with one investor partner, U.S. hedge fund Kingdon Capital Management, on the Adani short trade.[3][4][10] A Mauritius fund set up by India's Kotak Mahindra Bank created the offshore structure Kingdon used to short Adani, providing new details on these trades.[3][4][5][8][10]
However, Hindenburg said it made only $4.1 million in gross revenue from the Adani short and $31,000 from its own short position in Adani bonds. Net of legal and research costs, it barely expects to break even, refuting claims of a massive windfall.[3][5][9][11]
## Hindenburg Cites 40+ Media Probes Backing its Findings
Hindenburg argued that since its initial report, over 40 independent media investigations have corroborated its findings of suspected fraud at Adani. Meanwhile, the Indian conglomerate has still not directly addressed most of the allegations, instead offering blanket denials.[1][3][5][8][9]
## Adani Stocks Shrug Off Hindenburg Rebuttal
Unlike the crash after Hindenburg's January 2023 report, Adani Group stocks largely held steady following the short seller's sharp response to SEBI. Adani company shares closed flat to marginally lower on July 2, suggesting investors gave a cold shoulder to Hindenburg's latest salvo.[4][6][9]
In summary, Hindenburg's strong rebuttal to SEBI has brought its clash with Adani back into the spotlight, while revealing new details about its short trade. But the impact on Adani's market value has been limited so far compared to the initial report. The focus is now on SEBI to see if it can conclusively prove wrongdoing by either Adani or Hindenburg as it wraps up its long-running probe.[3][4][5][6][7][8][9][10][11]
Sources
[1] paste-2.txt https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/1437275/d90601fa-427e-4981-8a85-eea03640503e/paste-2.txt
[2] paste.txt https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/1437275/ad2c1242-71c8-4d6c-ae2d-ea1bebed41e6/paste.txt
[3] Hindenburg Made Just $4 Million From $153 Billion Adani Rout https://www.bloomberg.com/news/articles/2024-07-02/hindenburg-lashes-out-on-india-regulator-over-adani-report
[4] New twist in clash between US short seller Hindenburg and India’s Adani https://www.aljazeera.com/economy/2024/7/2/new-twist-in-clash-between-us-short-seller-hindenburg-and-indias-adani
[5] Adani Update – Our Response To India's Securities Regulator SEBI https://hindenburgresearch.com/adani-update-sebi/
[6] People Dislike Activist Short Selling - Bloomberg https://www.bloomberg.com/opinion/articles/2024-07-02/people-dislike-activist-short-selling
[7] Hindenburg denies Indian regulator's allegations on Adani short bet https://www.reuters.com/business/hindenburg-receives-show-cause-letter-indian-markets-regulator-2024-07-01/
[8] Hindenburg Questions SEBI's Response Over Adani - finews.asia https://www.finews.asia/finance/41620-hindenburg-adani-sebi-response
[9] Hindenburg Lashes Out on India Regulator Over Adani Report https://www.bloomberg.com/news/articles/2024-07-02/hindenburg-lashes-out-on-india-regulator-over-adani-report?cmpId=google
[10] Indian regulators allege Hindenburg's Adani report 'indulged in unfair trade practices' https://www.ft.com/content/ae104fce-0576-4ff0-a7ec-a0eed7849e97
[11] Hindenburg says it may break even on report that knocked $153 ... https://www.morningstar.com/news/marketwatch/2024070285/hindenburg-says-it-may-break-even-on-report-that-knocked-153-billion-off-adani