New Delhi. American firm Hindenburg Research released a report in the year 2023. In this report, it had made many allegations against Adani Group ranging from stock manipulation to money laundering. However, at the end of 2023, Adani Group got rid of these allegations.

Now India's market regulator SEBI has taken action against the American firm Hindenburg Research. SEBI has sent a show cause notice to the American firm Hindenburg Research.

The firm reacted to the notice received from SEBI and in its blog post published on July 1, it said that SEBI has stated in the notice that we have violated the rules. In fact, SEBI has alleged that Hindenburg's report contained some false statements which misled the readers.

Hindenburg described the show-cause notice as "nonsense" and "fabricated to serve a predetermined purpose".

American firm accuses SEBI

Hindenburg said in its blog post that in our view SEBI's responsibility is to protect investors, while SEBI is protecting the fraudsters. Further, the firm said that we had discussions with Indian market sources and we found that after the publication of our report, the Securities Exchange Board of India started helping the Adani Group.

The US firm said the show cause notice addresses some questions: "Did Hindenburg work with dozens of companies to short Adani, making hundreds of millions of dollars? No – we had one investor partner, and we barely got above costs."

"Our work on Adani was never justified from a financial or personal safety perspective, but it is still the work we are most proud of," the firm said.

Hindenburg said it received an email from Sebi on June 27 and later a show-cause notice outlining suspected violations of Indian regulations.

This allegation was made on Adani Group

On January 24, Hindenburg Research released a report against the Adani Group. In this report, many allegations were made against the Adani Group.

• US firm Hindenburg Research had accused the Adani Group of stock manipulation.
• The firm also alleged money laundering and accounting fraud.
• The firm's report also alleged that shares of 7 Adani Group companies have risen by up to 85 per cent, i.e., there has been a sky rocket valuation.
• The firm said in its report that Adani Group has a debt of Rs 2.20 lakh crore.
• Adani Group was accused of buying its shares by sending money to Mauritius and other countries.

Adani Group shares were affected

Hindenburg Research's report had an impact on Adani Group's shares. On January 24 last year, the share price of Adani Enterprises was Rs 3442 which fell to Rs 1404 by February 22.